Your 65th birthday is coming up and it’s time to start getting familiar with Medicare. You’re putting together your retirement budget and you need to know how much you can expect to pay every month. While Part A usually comes premium-free, as long as you and your spouse paid Medicare taxes. But Part B is different – your premium will be personalized based on your individual situation.
You can contact a senior health insurance specialist for a free Medicare insurance quote and you can expect an estimate that’s based on the following factors:
When You Enroll
Don’t miss the deadline or you will pay for it for the rest of your life – literally. Every 12-month period of time that you could have been enrolled in Medicare but did not take action to do so results in a 10 percent increase in your annual premium.
Pay attention and be sure to enroll from three months before your 65th birthday to three months following. You may also qualify for a special enrollment period if you were covered by employee-sponsored health insurance beyond your regular enrollment period, but talk to an insurance specialist for a personalized assessment of your situation.
Your Annual Income
How much you make each year drastically affects a Medicare insurance quote.
In 2016, Medicare enrollees paid $121.80 per month if the following described their financial situation:
- Made $85,000 or less as an individual
- Made $170,000 or less filing jointly
Higher earners pay more in Medicare Part B premiums. Individuals who made up to $107,000 and couples who made up to $214,000 paid $170.50 per month.
Individuals who made up to $160,000 and couples who made up to $320,000 paid $243.60. To talk more about how your income affects Medicare insurance quote, talk to an insurance advisor.
Your Social Security Benefits
Are you going to start collecting Social Security benefits? This will impact your future premiums as well. For example, most 65-year-olds who enrolled in Medicare in 2016 pay $121.80 per month. But those who enrolled in prior years who also collect Social Security only pay $104.90 per month. This is because by law, Medicare premium increases are not allowed to outpace Social Security benefits increases, and there was no cost of living allowance adjustment for Social Security in 2016. If you sign up for Medicare but delay collecting Social Security, you will not be protected from the possibility of subsequent years’ price increases.
Contact My Senior Health Plan to get a personalized Medicare insurance quote that takes into account all of the above: your age, your income and your Social Security benefits status. You can get factual information that will help you plan your retirement budget accurately.