Understanding Medicare

Posted on March 26, 2020 · Posted in Blogs, News, Retirement Planning

What is Medicare?

Medicare is a national health insurance program for people 65 or older, certain people under 65 with disabilities, and people with end-stage renal disease. Different parts of Medicare cover or partially cover various medical services and supplies. Medicare includes Part A, Part B, and Part D. In addition, Medicare Advantage is a bundled insurance plan inclusive of Parts A and B (and typically D) offered by private insurance companies.

How Do I Know Which Medicare Coverage I Have?

Look at your Medicare card and check all other current insurance cards you use. Use the phone numbers listed on the cards to receive more information about your coverage. Additionally, you can check your Medicare enrollment here.

What is Covered by Medicare?

Part A generally covers inpatient hospital care, skilled nursing facility services, and hospice services. Part B generally covers the doctors’ services and certain outpatient care. In addition, Part B may cover medical supplies and certain preventative tests. Part D covers various prescription drugs. For more information about specifications and restrictions, please view Medicare’s coverage information. To determine if a certain service or item is covered, please use Medicare’s lookup feature.

How Much Does Medicare Cost?

Most people receive Part A for free if you or your spouse paid Medicare taxes while working.  To determine if you are eligible for premium-free Part A, you can visit Medicare’s Part A page.

Part B monthly premiums for most people are $144.60.  Part B premiums are based off previous year modified adjusted gross income.  For example, if you filed a joint return in 2018 and had modified adjusted gross income under $174,000, your 2020 monthly Part B premium is $144.60.  Use the Medicare Part B premium chart to determine how much you must pay.

Part D monthly premiums are based on your specific Part D plan.  However, your previous modified adjusted gross income may result in an adjustment to your premium.  If you filed a joint return in 2018 and had modified adjusted gross income between $174,000 and $218,000, you must pay $12.20 plus your plan’s listed premium for Part D.

How Should I Plan for Medicare?

Are you getting ready to retire?  Are you looking to see how Medicare fits into your plan?  SFA offers wealth management solutions that incorporate retirement planning, investment management and Medicare / Social Security optimization.  It’s time to get started.  Set up a free, no pressure informational meeting.

 


For more information about Medicare, please call 1-800-MEDICARE (1-800-633-4227).

For more information, please visit the Medicare website.

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This article was written by Shoreline Financial Advisors. To learn more about us, please visit our website.


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