Medicare premiums
If you are either a Medicare beneficiary or a Medicare agent, you need to know the cost of Medicare premiums. Each year the costs are subject to change. Both enrollees and agents should stay updated on cost and coverage changes. Not having the correct information can be a costly mistake.
Medicare Part A
There is no premium ($0) for Part A for the majority of people most people. Beneficiaries who worked or had a working spouse who paid Medicare taxes for at least 40 quarters (10 years) receive premium free Part A.
Those who do not qualify for the $0, premium free Part A may be eligible to purchase it. Beneficiaries must sign up for Part B in order to purchase Part A. For 2024, the monthly premium is either $278 or $505. This depends on the length of time either the beneficiary or their spouse worked and paid Medicare taxes.
Please note: Beneficiaries who do not purchase Part A when they are eligible (in most cases at 65 years old), may pay a penalty. The penalty adds 10% to the monthly Part A premium and lasts for twice the number of years that you neglected to sign up for Part A.
Medicare Part B
The monthly premium for Part B is $174.70 in 2024. This amount usually changes on January 1st each year. This premium may be higher for some individuals with a higher income level. This additional charge is called an IRMAA, and it effects about 8% of Medicare beneficiaries. The Additional charge ranges from $69.90 up to $419.30 added to the monthly premium.
Medicare may charge a late enrollment penalty to anyone who did not enroll in Medicare Part B when they were first eligible or did not have creditable coverage in place at that time. The LEP for failing to enroll in Part B is 10% for every year the beneficiary did not sign up for Part B. This penalty is different than the Part A penalty; it will last for as long as the beneficiary has Part B.
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