If you’re currently on Medicare or reaching the age where you are considering Medicare, it’s important to understand the basics. Furthermore, you should consider how premiums are calculated in order to have an idea of what kind of premium you’ll be looking at. Here is a quick guide showing you what Medicare is, how Medicare premiums are calculated, and average rates to expect.
What is Medicare?
Medicare is the federal health insurance program for people who are 65 or older, certain younger people with disabilities, and people with End-Stage Renal Disease (permanent kidney failure requiring dialysis or a transplant).
Medicare coverage is broken down into different parts. These different parts include Medicare Part A (Hospital Insurance), Medicare Part B (Medical Insurance), Medicare Part C (Medicare Advantage Plans), and Medicare Part D (prescription drug coverage).
Each part of Medicare covers a specific service that range from inpatient hospitals stays to prescription drug coverage, and Medicare Medical Savings Account Plans to care in a skilled nursing facility. Knowing this, how are Medicare Premiums calculated?
