The Cost of Medicare
Medicare premiums are will impact your retirement costs. Most people don’t pay a premium for Medicare Part A, which covers hospital visits. But you will pay monthly premiums for Part B (doctor services and outpatient care), Part D (prescription drugs), and supplemental coverage that may pick up the cost for deductibles, co-pays and medications. These could be taken straight out of your Social Security check.
The premium for Part B is tied to inflation. Most people paid $109 a month in 2015– and it isn’t going up at all in 2016. You might have to pay more if you don’t get Social Security because you receive a government pension, or if your annual income is more than $85,000.
The premiums for Part D and supplemental insurance are set by your provider and vary by plan and by where you live. You can expect these to take up a big chunk of your expenses and are big drivers of rising health care costs. Part D premiums were expected to go up an average of 12% last year, according to HealthView. (Source CNN Money, Dec. 2015)
When assessing the best insurance you always need to look at the cost of annual premiums and co-pays at different levels, compare costs, then factor in the number of visits and co-pay/co-insurance per visit that you anticipate for the next year. Determine if you may be better off paying a higher premium but not having to pay out-of-pocket at your office visits.