How Much Does Medicare Part B Cost

How Much Does Medicare Part B Cost is a question we receive on a regular basis.  Many people turning 65 think Medicare is a free service, which is not the case.  Each part has its own associated costs, and it depends on how much you paid into the system over time.  Read on to learn more!

How Much Does Medicare Cost

In this article, we will be addressing the costs associated. with Medicare Part B.  To learn more about the pricing for Medicare Part A, please read our article on Medicare Part A.

Generally speaking, Medicare Part B will be what people associate with costs.  It is the “medical” costs.  These costs include a monthly premium, a deductible and co-payments/ co-insurance.  Part A, hospital coverage “usually” does not have a premium, but does have a deductible.

How Much Does Medicare Part B Cost: Monthly Premium

There is a monthly premium for Part B coverage, though actual costs can vary depending on your household income levels. If you are single and make below $87K a year are married and make below $174K as couple, the Part B premium cost for 2020 will average $144.60 per month.

If you exceed the two yearly salaries mentioned above, your Part B premium cost will range from $202.40 to $491.60 per month, based on income level.

Depending on your situation, qualifying income programs; there is a possibility your Medicare Part B coverage may be covered by your state.  Generally speaking, individuals will continue to pay their Part B premium unless they are in a state program or Medicare Plan that offers assitance paying for the Part B premium.

Medicare Part B Annual Deductible

In 2020, the yearly deductible for Medicare Part B is $198. Essentially this means, if you are enrolled in only “Original” Medicare, when you receive services covered by Medicare Part B, you will pay $198 before Medicare starts helping you pay. Those with Medicare who have incomes less than 100% of federal poverty level   (about $1,063/month, varies by state and program types), and enrolled in a progam that helps pay their Medicare costs, they may be excused from paying this deductible.

Medicare Part B Coinsurance

After you have paid your deductible in full, you will be responsible to pay 20% of the cost approved by Medicare. This applies to most Medicare Part B services.  This can be costly, depending on services needed, and if you do not have any additional coverage to help pay for your 20% responsibility.

Accepting assignment

An important way to keep Medicare Part B costs down is to make sure that your healthcare providers take Medicare and “accept assignment.” This essentially means your doctor or provider provides the services at the accepted cost covered by Medicare Part B, which is also  called the Medicare-approved amount.  Since this amount is paid in full, you would only pay the 20% coinsurance costs.

Doctors and facilities that see patients with Medicare but do not accept assignment can charge up to 15% more than the approved amount by Medicare.  This means you would pay the 20% coinsurance plus up to an extra 15% of costs added on by the facility.

For example, if the Medicare-approved amount for a doctor visit was $100, but your doctor did not accept assignment, he could charge you up to $115 for your visit. You would pay $35 (20% of the $100 Medicare-approved amount, plus the extra $15 not covered by Medicare).

Opting out

Doctors and facilities can also “opt out” of the Medicare program. This means that they can charge you whatever they like for a service and will not bill Medicare. If you see a provider that has opted out of Medicare, you will have to pay the full cost of the service you receive; Medicare will not pay any part of the cost. Providers that opt out of Medicare should have you sign a contract saying that you understand that you will have to pay the full cost of the service.

Verus Health Partners Can Help

At Verus Health Partners, we educate our clients.  Our goal is to ensure you have the proper coverage for your situation.  Contact us today to learn more about Medicare costs and how we can help you save money. You can follow us on Facebook for other helpful information.