Medicare can be expensive. There are fortunately a number of ways to help offset those costs. Below we have compiled a list of different avenues you can use to help make Medicare more affordable.
Estimated Costs of Medicare
As a reminder, Medicare is composed of 4 parts. Part A is mandatory, but Parts B, C, and D are mostly optional. If you decide to forgo Parts B and D when you are first eligible, you will have to pay a late fee later if you do decide to enroll. Below are the general estimated costs of each of the parts of Medicare.
Part A
Monthly premium = $0*
Annual Deductible: $1484 for each benefit period (60-day window)
Inpatient Costs
- Day 1-60 Coinsurance: $0
- Days 61-90: $371 per day
- Day 91 and after: $742 per day
Skilled Nursing Facility Coinsurance Days 21-100: $185.50
*For people who have paid 40 tax credits
Part B
Monthly premium (2021): $148.50
Deductible: $203
Part C
Average monthly premium 2019: $23
Part D
Average monthly premium 2019: $39.63
Annual Deductible: $445
Medicare Supplement Plans
Average monthly premium 2019: $152
All of these premiums vary significantly depending on your location and demographic.
Medicaid
Medicaid is different from Medicare. Medicaid is a financial assistance program run by both the federal and state governments whose aid is dependent on your income. Medicare, on the other hand, is a health insurance plan for certain populations. You can qualify for both Medicare and Medicaid at the same time. This means that you have a health insurance plan that will cover you for healthcare under Medicare, but the premiums and out-of-pocket expenses will be subsidized by Medicaid.
Qualifying for Medicaid and Medicare also makes you eligible for certain Medicare Advantage Plans called Dual Eligible Special Needs Plans. These plans can help you save even more money while accessing bonuses within healthcare, such as coordinated healthcare amongst all of your providers.
Medicare Savings Program
These programs are specifically structured to help people pay for premiums and out-of-pocket expenses. They are run by individual states, so the income requirements vary by state. Generally, these programs help pay for Part A, Part B, and deductibles, copayments, and coinsurance.
Extra Help Program
The Extra Help Program is specifically to help low-income people afford Medicare Part D and their prescription drug coverage. It helps pay the cost of monthly premiums, annual deductibles, co-pays, and other costs associated with Part D. It pays up to about $5,000 a year. The income cutoff is generally $14,790 for an individual or $29,520 for a couple.
PACE (Program of All-Inclusive Care for the Elderly)
This is a program run by both Medicare and Medicaid that helps save older people money by covering all healthcare services.
Supplemental Social Security Income
If you are disabled, blind, or age 65 or older and also have a reduced income, you may qualify for Social Security. This program would offset your costs by sending you a monthly check.
To learn more about how to offset your premiums, contact us at Wise Insurance today!
