While Medicare will provide coverage for your doctor or hospital bills it was never intended to cover all of your expenses. A hospital stay or prolonged outpatient treatment could be financially devastating if you are relying on Medicare alone. For this reason, we recommend you also enroll in a Medicare supplement and Part D (prescription drugs) insurance plan.
Deciding which Medicare supplement and Part D insurance plan to enroll in once you become Medicare eligible can be a difficult decision. Given the complexity of the Part D insurance plans, the number of Medicare insurance plan options available and insurance companies offering not only the traditional supplements but also Medicare Advantage plans, it can be a very time consuming and intimidating process.
It is very important to give careful consideration to your choice of Medicare Supplements. Open enrollment for Medicare supplement insurance plans begin when someone first enrolls in Medicare Part B, regardless of age. Once you are beyond the open enrollment period, any application/changes you want to make may require medical approval.
Many insurance plan options are available for prescription drug coverage, Part D. While most insurance plans have similarities, there are several issues to consider when deciding which insurance plan is best for you. An insurance company�s drug formulary, the monthly premium and reputation are key factors to consider when making your decision. Unlike the Medicare supplement insurance plans, you can change Part D insurance plans and/or insurance companies annually during the 'Open Enrollment Period' without having to qualify for the coverage. To evaluate Part D options we recommend that you go to www.Medicare.gov.
JME Insurance Agency is not connected with or endorsed by the United States government or the federal Medicare program.
2012 Medicare Costs
Part B Monthly Premium
You pay a Part B premium each month. Most people will pay the standard premium amount. However, if your modified adjusted gross income as reported on your IRS tax return from 2 years ago is above a certain amount, you may pay more.
| If Your Yearly Income in 2010 was | You pay | |
|---|---|---|
| File Individual Tax Return | File Joint Tax Return | |
| $85,000 or less | $170,000 or less | $99.90 |
| above $85,001 up to $107,000 | above $170,001 up to $214,000 | $139.90 |
| above $107,001 up to $160,000 | above $214,001 up to $320,000 | $199.80 |
| above $160,001 up to $214,000 | above $320,001 up to $428,000 | $259.70 |
| above $214,000 | above $428,000 | $319.70 |
Part D Monthly Premium
The chart below shows your estimated prescription drug plan monthly premium based on your income. If your income is above a certain limit, you will pay an income-related monthly adjustment amount in addition to your plan premium.
| If Your Yearly Income in 2010 was | You pay | |
|---|---|---|
| File Individual Tax Return | File Joint Tax Return | |
| $85,000 or less | $170,000 or less | Your Plan Premium |
| above $85,001 up to $107,000 | above $170,001 up to $214,000 | $11.60 + Your Plan Premium |
| above $107,001 up to $160,000 | above $214,001 up to $320,000 | $29.90 + Your Plan Premium |
| above $160,001 up to $214,000 | above $320,001 up to $428,000 | $48.10 + Your Plan Premium |
| above $214,000 | above $428,000 | $66.40 + Your Plan Premium |
If you have questions about your Part B or Part D premium, contact Social Security at 1-800-772-1213