As senior citizens approach their sixty-fifth birthday they begin thinking of Medicare benefits. Few have thought about the cost of Medicare. Medicare is not free. Many individuals paid the Medicare tax during their working years and will owe no premiums for Medicare Part A. However, some seniors are discovering for the first time that they will owe premiums for the basic Medicare Part A.
What Does Medicare Cost?
Medicare Part A premiums cost as much as $443.00 per month in 2009 for those individuals who had not paid sufficient Medicare taxes during their working years. Please note that the sum of $443.00 was the maximum monthly premium. Individuals who had paid some Medicare taxes during their years of employment could pay less. Depending on the amount of Medicare taxes paid over the working life of a person, he may pay nothing for Medicare Part A or in 2009 he could have paid an amount between $ 0.00 and $443.00 each month.
What Does Medicare Part B Cost?
Most people who enroll in Medicare Part B will pay a monthly premium of $96.40. This sum is based on an individual's income being at or below $85,000 per year. For those whose individual income exceeds the $85,000 per year mark, the premiums could be higher. To determine the exact amount it is best Social Security Administration at this time.
Are There Any Extra Medicare Costs?
If the individual did not properly enroll in either Medicare Part A or Medicare Part B during the open enrollment period, penalties will be applied to the monthly premiums of both Part A and Part B increasing the Medicare costs.