New to Medicare

If you’re new to Medicare or recently just became eligible, it’s important that you understand the coverage you’ll be getting, what it will cost, and how you can enroll. That’s where American Insurance Group comes in! We will walk you through all your options so you can get the coverage you need.

Medicare consists of four parts: Medicare Part A, Part B, Part C, and Part D.

Medicare Parts A and B together make up what is known as Original Medicare. Medicare Part A is hospital insurance. Medicare Part B is medical insurance. Both of these together will provide coverage for your inpatient and outpatient services.

Medicare Part C, also known as Medicare Advantage, provides full Original Medicare coverage and may also offer extra coverage such as vision, dental, prescription drugs, and/or wellness and fitness programs like gym memberships.

Medicare Part D is prescription drug coverage that helps you pay for the medications you need.

Costs of Medicare

Each part of Medicare has a different cost associated with it.

Medicare Part A costs include the Medicare Part A monthly premium, which most people don’t have to pay. This is often called premium-free Part A, and you likely qualify for it if you or your spouse paid Medicare taxes while working.

For those who don’t qualify for premium-free Part A and paid Medicare taxes for less than 30 quarters, your monthly premium will be $471 as of 2021. Your monthly premium will be $259 if you paid Medicare taxes for 30-39 quarters.

For your Medicare Part A deductible and coinsurance, you pay:
• $1,484 deductible for each benefit period
• Days 1-60: $0 coinsurance for each benefit period
• Days 61-90: $371 coinsurance per day of each benefit period
• Days 91 and beyond: $742 coinsurance per each “lifetime reserve day”
• Beyond lifetime reserve days: all costs

The cost of Medicare Part B is the monthly premium and deductible. In 2021, the standard Part B monthly premium is $148.50, although it may be higher based on your income. The Medicare Part B deductible is $203. Once you meet the deductible, you will pay 20% of the Medicare-approved cost for most doctor services, durable medical equipment, and outpatient therapy.

The cost of Medicare Part C varies depending on your plan. The average premium in 2021 for Part C is $21, but it’s important to note that you still need to pay the Part B premium when you pay for Part C.

The cost of Medicare Part D includes the monthly premium, which varies by plan. Costs for Part D are income-dependent, and you may pay more if you have a higher income. The average premium as of 2021 is $30.50, and the maximum deductible is $445, although some plans will have a lower deductible.

Medicare Enrollment Periods

While some are automatically enrolled in Medicare, others will have to manually enroll themselves. The best time to enroll is when you first become eligible and enter your Initial Enrollment Period. This period starts three months before the month of your 65th birthday and then ends three months after your birthday month.

If you miss this period, you can enroll during the General Enrollment Period from January 1 to March 31. However, enrolling in this period could result in late enrollment penalties, and your coverage won’t start until July 1.

Now, it’s possible to delay your Medicare enrollment without paying late enrollment penalties if you qualify for a Special Enrollment Period. You can qualify for this period by experiencing qualifying events, such as moving to a new address, losing your current coverage, getting a chance to enroll in other coverage, or even your plan changing the contract it has with Medicare.

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Need Help Getting Medicare Coverage?

American Insurance Group can help you get the coverage you need. We help you make informed decisions about one of the most important parts of retirement: your health care coverage. Contact us to get started with a free Medicare consultation today.