How much does Medicare Part B cost?

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How Much Does Medicare Part B Cost JPG 129KB

If you read this article “How Much Does Medicare Part B Coast“, you will know all the costs associated with having Part B. 

First, what is Medicare Part B?

Part B is the Medical Insurance in Medicare. You have Part A, which covers the charges if you are admitted into a hospital (Hospital Insurance). Part B covers mostly everything outside of the hospital. 

  • Helps cover:
    Services from doctors and other health care providers
  • Outpatient care
  • Home health care
  • Durable medical equipment (like wheelchairs, walkers,
    hospital beds, and other equipment)
  • Many preventive services (like screenings, shots or vaccines,
    and yearly “Wellness” visits)

The standard Part B premium amount in 2022 is $170.10. Most people pay the standard Part B premium amount.

If your modified adjusted gross income is above a certain amount, you may pay an Income Related Monthly Adjustment Amount (IRMAA). IRMAA is an extra charge added to your premium. To determine if you’ll pay the IRMAA, Medicare uses the modified adjusted gross income reported on your IRS tax return from 2 years ago.

Note: You may also pay an extra amount for your Medicare drug coverage (Part D) premium if your modified adjusted gross income is above a certain amount.

Here is the chart that shows the incomes levels so that you can see where you are. 

IRRMA Chart

Part B Deductible & Coinsurance

Part B also has a deductible and coinsurance. In 2022, you have to pay a $233 deductible. You only pay this deductible once per year. After your deductible is met, you typically pay 20% of ALL Medicare-Approved charges for most doctor services (including most doctor services while you’re a hospital inpatient), outpatient therapy & services, and durable medical equipment.

Example:

Out of nowhere, you have a heart attack. The ambulance takes you to the hospital and they work on you for a day in the ER. You will be ok but you are admitted to the hospital because you need heart surgery. After the surgery, you spend a few days recovering and you will need follow-up care to make sure you’re ok. A few weeks later you start getting bills in the mail because you only had Medicare Part A & B. Here is an example of charges you would be responsible for: 

Hospital Inpatient Care Part A: $1556 Deductible

Part B charges for ER, Doctors, Other Staff, and Services: $50.000

You are responsible for the Part A Deductible, Part B Deductible & Part B Coinsurance: $1,556 + $10.000 (the 20% of 50K)= $11,556 YOU HAVE TO PAY

What’s the Part B late enrollment penalty?

If you didn’t get Part B when you’re first eligible, your monthly premium may go up 10% for each 12-month period you could’ve had Part B, but didn’t sign up. In most cases, you’ll have to pay this penalty each time you pay your premiums, for as long as you have Part B. And, the penalty increases the longer you go without Part B coverage.

Example:

Your Initial Enrollment Period ended December 2016. You waited to sign up for Part B until March 2019 during the General Enrollment Period. Your coverage starts July 1, 2019. Your Part B premium penalty is 20% of the standard premium, and you’ll have to pay this penalty for as long as you have Part B. (Even though you weren’t covered a total of 27 months, this included only 2 full 12-month periods.)

Usually, you don’t pay a late enrollment penalty if you meet certain conditions that allow you to sign up for Part B during a Special Enrollment Period. 

If you have limited income and resources, your state may help you pay for Part A, and/or Part B. You may also qualify for Extra Help to pay for your Medicare prescription drug coverage.

What do most people do to cover Part B gabs?

Over 60% of people who enroll in Original Medicare, keep both Part A & B. The reason they do that is because when you have Original Medicare, you can go to any doctor or facility in the whole United States who accepts Medicare. Over 95% of doctors and medical facilities accept Medicare. You don’t have to ask anyone for permission to somewhere. It’s the ultimate healthcare freedom you can have. 

Most people just buy a Medicare Supplement plan or also known as Medigap. It’s the easiest way to protect yourself from the finacial gaps of Medicare.   

If you are interested in a Medigap plan, you can click the following picture or HERE to read more about it. 

If you have questions about anything relating to this article or any general questions about Medicare, don’t hesitate to call me directly on my cell phone. My name is Daniel and my number is 727-777-3661. You can also visit us online at www.LocalMedicareServices.com to schedule an appointment.

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Daniel Vujinovic

Daniel Vujinovic

Daniel Vujinovic has been a licensed Insurance Agent since 2012. He started working in the corporate insurance world at first to get his feet wet. After about a year in corporate, he decided that he can help more people as an independent agent who can offer more companies and products. As he started growing his book of business, Daniel and his wife Shannon decided to open LocalMedicareServices.com and continue growing a local presence in his community.

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