Medicare Part B is a part of Medicare that covers medically necessary services and outpatient services. With Medicare Part B comes monthly premiums and other out-of-pocket costs you will have to pay. Some Medicare beneficiaries may pay a higher monthly premium depending on their income level.
In 2021, you’ll have to pay a Medicare Part B deductible of $203, as well as a 20% coinsurance. While Medicare Part B is not free, there are a couple of programs that can help you reduce the cost of signing up for Medicare Part B.
Defer Income to Avoid a Part B Premium Surcharge
The standard monthly premium for Part B is $148.50 in 2021 – but that assumes you are not earning a higher income. Your yearly income from 2019 will be what will determine the premiums you pay for 2021. If you filed an individual tax return and made $88,000 or less, you will pay the standard premium. If you filed a joint tax return and made $176,000 or less, you will also pay the standard premium. However, anything above these figures will result in a higher premium payment.
You may be able to save yourself a higher monthly premium for at least a year if you can report a lower total on your tax return. And you can do this by deferring income tactically to future tax years since the surcharges are based on previous tax returns.
Medicare beneficiaries who receive Social Security have their Medicare Part B premiums taken directly from their Social Security benefits. With this in place, your premiums will be deducted automatically and worries about missing your Part B payment should be nonexistent.
Get Help from a Medicare Savings Program (MSP)
Medicare Savings Programs can help with Medicare Part B out-of-pocket costs and premiums for Medicare beneficiaries with limited income and assets. There are four different types of Medicare Savings Program, and they offer varying benefits. The four types of MSPs each have different requirements in terms of a financial situation that will make you eligible, including income and asset limits.
Qualified Medicare Beneficiary (QMB) is one of the MSPs that can help reduce the cost of enrolling in Medicare Part B. If you qualify for QMB, your state should pay your Medicare Part B premiums, copay, and deductibles.
However, if your income and asset are too high to be eligible for QMB, you can consider applying for Qualifying Individual (QI) or Specified Low-Income Medicare Beneficiary (SLMB) programs. While the asset limits are similar to the Qualified Medicare Beneficiary, the income limit can be up to 80% higher depending on the type of MSP.
Need Help? Contact Temmen Insurance
For more information about how to save money with Medicare Part B, contact Temmen Insurance for help. Our expert team can answer all your Medicare questions and guide you in the right direction, finding a plan that meets your needs!