Medicare Costs

A: Most people don’t have to pay a premium for Medicare Part A, depending on how long you or your spouse worked and paid Medicare taxes. If you do not qualify for premium-free Part A, the premium can range from $274 or up to $499 each month in 2022. The premium will increase just a bit in 2023 ranging from $278-$506 a month.

There is an in-patient hospital deductible per benefit period, and you must pay coinsurance for covered doctor services you get while in the hospital. The deductible amount is $1,556 for the year 2022 and $1,600 in 2023. You may obtain care from a skilled nursing facility after a 3-day hospital stay. You will pay nothing for the first 20 days of the benefit period and a coinsurance amount per day for days 21-100. These Medicare Part A costs may change from year to year.

A: In 2022, you will likely pay a monthly premium of $170.10 and the premium will decrease to the amount $164.90 in 2023. People may have to pay more, depending on income level. With Medicare Part B, you have to pay an annual deductible and after that is met 20% of Medicare’s allowed amount for covered services.

A: Your Part D costs can change every year. This includes your monthly premium, deductibles, and coinsurances or copayments. During the coverage year, your plan cannot change your deductible or premium, but the amount you pay for drugs may change depending on your coverage period. Your plan should send you an Annual Notice of Change (ANOC) every fall to inform you about any changes that will happen next year.

A: Plans may cover Medicare Part A (hospital care) and Part B (medical care) copays, coinsurance, and deductibles. To see more, visit our Resource Center.

A: Medicare Advantage Plans cover the same services Original Medicare does; some plans also cover additional benefits, hence the advantage.

A: Yes, Medicare recipients are eligible to write off their qualified medical expenses when they file their taxes if your total medical expenses exceed 7.5% of your Adjusted Gross Income (AGI) and you itemize deductions via a Schedule A (Form 1040).

The IRS has an Interactive Tax Assistant tool that will help determine if your medical expenses are deductible on your tax return. The best bet is to get advice from a tax professional to know the best route for you and your lifestyle.

A: If you have limited income and resources, you may be able to get help from your state to pay your Medicare costs if you meet certain conditions. This help is referred to as Medicare Savings Programs (MSPs) and it includes four types. Each of the four types of Medicare Savings Programs (MSPs) have various eligibility criteria, including restrictions on a person’s income and resources. These are federal standards; state regulations for MSPs may be more lenient, and some do not impose asset limitations (in other words, they base eligibility on income alone).

Medicaid is managed jointly by the federal and state governments. Since the Medicaid program funds MSPs, your state Medicaid office determines eligibility for MSPs. You can submit an MSP application online, at your local Medicaid or social services office to see if you qualify.

A: A federal program called “Extra Help” (also known as the Part D Low-Income Subsidy) assists Medicare recipients with low incomes and few resources in paying for prescription medications. To see if you qualify for Extra Help, visit Social Security online here or at a local office.