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June 24, 2016

2016 Medicare Costs

2016 Medicare Costs

There are 2 main components of Medicare costs. There are fixed costs and variable costs. As a principle, fixed costs are costs that can be predicted while variable costs tend to be unpredictable. Some of the fixed costs of Medicare Part A and Part B include the monthly premium, which for Part A is free for people who worked for 10 years or 40 quarters. If you don’t qualify for Part A “premium free” then the cost $411/month. Part B monthly premium for 2016, which is a fixed cost, is either $104.90, if you are receiving Social Security benefits or $121.80 if you are not. The Part B monthly premium is based on your income and how you file your taxes. Medigap plans are also fixed costs since you can predict how much you will pay each month. Now, Medigap premiums do experience increases once or every other year depending on each insurance carrier. That’s why it is very important to be able to shop among top rated insurance carriers in Colorado and find out about their rate of premium increase over time. Medicare Part D prescription plans can be both fixed and variable, depending of whether you purchase a stand alone plan or combine it with an Medicare Advantage plan (Medicare Part C). 

Medicare variable costs are based on whether you use services or not. For example, if you only have Original Medicare coverage (Part A and Part B), you will be responsible for 20% of all approved charges. This is 20% coinsurance is variable because you can predict the exact amount. Medicare Part C or Medicare Advantage plans are also variable and even though monthly premiums are 0, they will have variable deductible, coinsurance, and copayment amounts. Each one of those Medicare Advantage plans are different and careful review is needed by an independent agent before making a decision.

Medigap plans have the most fixed costs out of all other Medicare coverage since they fill in all the “gaps” in Original Medicare coverage. Medigap plan F also provides first dollar coverage and has the most comprehensive coverage. Medigap plan G will have much better value. Remember, all Medigap plans are standardized (same coverage) but different insurance companies can charge different premiums.

If you have further questions, please visit and fill out the contact form or send me and e-mail at [email protected] or you can always call at (719) 360-2795 

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This article is provided to you by Medicareline Insurance at

John A. Balota, Owner of Medicareline Insurance

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