How are Medicare premiums determined?
Learn about Medicare monthly insurance premiums for 2009, and how Medicare premiums are determined for Medicare Part A and Part B.
Medicare, the government-funded medical care program for persons over 65 and persons who have been entitled to disability benefits for at least 24 consecutive months, is divided into two main parts, Part A and Part B. Medicare premiums for both parts vary and are determined based upon a number of factors.
So, how are Medicare premiums determined?
Part A
Medicare Part A acts as hospital insurance. For any person who has worked 40 or more quarters of Medicare-covered employment, there is no monthly premium for Medicare Part A coverage. There is, however, a deductible (for 2009, the amount is $1,068) that must be met. For those who have between 30 and 39 months of Medicare-covered employment, the monthly premium is $244 for 2009 in addition to the deductible. For those with fewer than 30 months of Medicare-covered employment, the cost for Part A coverage is $443 per month for 2009, also in addition to the deductible.
Part B
Medicare Part B acts as medical insurance. The monthly premium for individuals for 2009 is $96.40, provided that the individual’s yearly income is less than $85,000 if he or she is single, and less than $170,000 if he or she is married. For those with personal incomes exceeding $85,000 individually or $170,000 jointly, the monthly premiums increase incrementally according to income strata. It’s important to note that income is determined based upon tax returns from two years previous. For example, premiums for 2009 are based on an individual’s 2007 tax return. If a person’s income has declined in the intermittent two years, he or she can request that Medicare evaluate his or her income based on a more recent return.
Related posts
- How Are My Premiums Determined On My Medicare Supplement?
- What Does Medicare Cost?
- What Is A Medicare Buy In Program?
- What Does Medicare Part B Premiums Mean?
- Who Qualifies for Medicare Part A?
3 Responses to “How are Medicare premiums determined?”
Leave a Reply
Send this page to a friend ...
I truly like your article. It’s evident that you have a lot understanding on this topic. Your factors are properly created and relate-able. Many Thanks for producing participating and interesting material.
Your article does not give a single clue as to how Medicare premiums are determined. It simply regurgitates the facts about what the premiums are, straight from the Medicare website.
That’s surely understandable but there are two sides to every single coin. Here’s my just take on the matter. One of the most addictive aspects of EVE On The Internet is that there are so several things to do at any given time. Becoming a new participant I felt very considerably overcome by the multitude of alternatives and I realized I could in no way find the money for to purchase any of the better, shinier toys that are so easily offered to seasoned veterans. I am completely hooked up on taking part in EVE On The Web but acquiring a occupation and a family members will never permit me to spend all evening mining asteroids.