Medicare comes with a price
Medicare has two components. Part A, which covers most costs for hospital and hospice services. For people over 65 who have paid Medicare payroll taxes for at least 10 years, Part A is free. People who cannot benefit from these free services covered by Part A can pay a monthly premium of several hundred dollars.
Part B pays for doctor visits and outpatient services, but it doesn’t come quite cheap. In 2020, Medicare beneficiaries had to pay a standard premium of $144.60 per month. In 2021, the monthly amount increased to $148.50. For Part D, which pays for prescription drugs, a monthly fee is also required, based on the plan you go with. In 2021, the average Part D basic premium is around $30 per month, similar to the amount you had to pay in the previous year. Apart from the premiums, you’ll also have to cover certain co-payments, deductibles and other out-of-pocket costs.
