How Much Does Medicare Part B Cost?
Fortunately, Medicare Part B Premiums are usually automatically deducted from your disability or retirement benefits. Specifically, if you receive payment from Social Security, the Railroad Retirement Board, or the Office of Personel Management, then the payment will be taken care of for you.
On the other hand, if you do not receive any of these benefits, you will be responsible for paying the premium on your own.
The cost of Part B premiums is based on your gross monthly income levels. The base cost in 2020 is $144.60. Most Medicare beneficiaries will pay the base amount.
The amount you pay is determined by Medicare from the most recent tax return reports available to the Social Security service. Medicare then looks at your modified adjusted gross income and places you within the appropriate premium tier.
Note, however, that Medicare can only access reports from two years prior to your coverage. The reason they can only access these two-year-old reports is that they are the most recent reports available to the Social Security office.
In addition to a premium, beneficiaries will also pay an annual deductible. In 2020, the deductible was set at $198. Once the deductible is met, Medicare will cover 80 percent of the cost for approved services.
How Do I Sign Up for Medicare Part B?
First, you must be eligible for Medicare benefits. For most people, you will be eligible for Medicare when you turn 65. Usually, you will be enrolled in both Medicare parts A and B when you turn 65.
However, if for some reason you are not enrolled automatically, you can fill out a Medicare Part B application during your enrollment period. This enrollment period includes the three months before your birthday, the month of your birthday, and the three months after your birthday.
If you sign up after this initial enrollment period, you will be charged a late enrollment fee. You will be charged late enrollment fees as long as you receive Medicare coverage.
Late Enrollment Fee Exceptions
Alternatively, if you did not sign up during your initial enrollment period, or if you do not qualify for a Special Enrollment Period, you may sign up during General Enrollment. Should you qualify for one of these enrollment periods, you will not have to pay late enrollment fees.
The General Enrollment Period opens every year on January 1st and closes March 29th.
If you do sign up during this time, you will be responsible for paying the Part B premium. If you also sign up for Part A, you will also have to pay the Part A premium.
Special Enrollment Period Qualifications
There are two different Special Enrollment Period options depending on your situation. First, you may be able to sign up for Medicare at any time if:
You are working
Your spouse is working
You or your spouse has group plan coverage.
Your group plan coverage may come from either an employer or through a work-related union.
Secondly, you may be eligible for an 8-month Special Enrollment Period the month after one of the following:
End of employment
The end of the work-related group plan coverage
What’s the Difference Between Medicare Part B and Medicare Advantage?
Some people may confuse Medicare Advantage plans with Original Medicare plans. However, Original Medicare is a combination of Parts A and B and is covered by the federal government. On the other hand, Medicare Advantage plans are offered and provided by private insurance companies.
Medicare Can Be Complicated, We Make it Simple
If you need help signing up for Medicare Part B coverage come visit Buffalo Health Advisors. We have many years of experience helping people get the coverage that they need. We also have some helpful videos that answer frequently asked questions about Medicare that you can view here on our website.
Let Us Help You Find The Right Plan
At Buffalo Health Advisors, we believe in providing solutions to individuals as they transition to Medicare plans. We can help you understand the benefits of both Original Medicare Plans and Medicare Advantage Plans. We will help you find the right plan that will help you protect your health, while also protecting your overall wealth.
Visit or call our Nashville, TN office to learn more about all of your Medicare options at no cost to you.
Compare Medicare Advantage plans to find the best match for your personal needs with no obligation!