I have a Medicare Advantage Plan. Do I still need to pay my Part B premium?

Whether you enroll in a Medicare Advantage (Medicare Part C), or you plan to keep Original Medicare Part A and Part B, and purchase a Medicare Supplement plan, you are still required to pay the Medicare Part B premium monthly.

If you sign up for both Social Security and Medicare Part B – the part of Original Medicare that covers medically necessary and preventative services, The Social Security Administration will automatically deduct the premium from your monthly benefit.  Medicare Part A, which covers hospitalization, is free for anyone eligible for Social Security, even if they have not claimed benefits yet. If enrolled in Part B but not yet collecting Social Security benefits, you’ll be billed quarterly by Medicare.

As a Medicare beneficiary, you have many options when it comes to how you receive your Medicare benefits. If you plan to stay enrolled in Original Medicare Part A and Part B, You can also purchase a Medicare Supplement Plan to help fill in gaps left behind.

If you choose to leave Original Medicare Part A and Part B, you can enroll in a Medicare Advantage (Part C) plan during your initial enrollment period or during the annual enrollment period.

The standard Medicare Part B premium for 2020 is $144.60. While most Medicare beneficiaries will pay the standard premium amount, the premium you will pay is dependent on your income.

If your yearly income in 2018 was

You pay each month (in 2020)

File individual tax return

File joint tax return

File married & separate tax return

$87,000 or less

$174,000 or less

$87,000 or less

$144.60

above $87,000 up to $109,000

above $174,000 up to $218,000

Not applicable

$202.40

above $109,000 up to $136,000

above $218,000 up to $272,000

Not applicable

$289.20

above $136,000 up to $163,000

above $272,000 up to $326,000

Not applicable

$376.00

above $163,000 and less than $500,000

above $326,000 and less than $750,000

$87,001 and less than $413,000

$462.70

$500,000 or above

$750,000 and above

$413,000 and above

$491.60

 

If your income falls below the federal standards, help is available for Medicare beneficiaries through Medicare Savings Programs (MSP). Medicare Savings Programs (MSPs) can help pay for Medicare Part A and Part B premiums, deductibles, co-pays, and co-insurance for those who qualify. There are also Medicare Savings Plans (MSPs) that help with only the Medicare Part B premium. Each Medicare Savings Plan has a specific income and asset limit, resources that can’t be counted as assets include:

  • Your primary house
  • One car
  • Household goods and wedding/ engagement rings
  • Burial spaces
  • Burial funds up to $1,500 per person
  • Life insurance with a cash value of less than $1,500

For example, let’s say you are a single man with a monthly income of $1,045. You own your home and car valued at $100,000 combined. Additionally, you have a life insurance policy with a cash value of $1,100. In this scenario, you would still be eligible for the Qualified Medicare Beneficiary Program (QMB).

Program Name

2019 Monthly Income Limits

2019 Resource Limits

Individual*

Married Couple*

Individual

Married Couple

Qualified Medicare
Beneficiary (QMB)

All States: $1,061
Alaska: $1,320
Hawaii: $1,219

All States: $1,430
Alaska: $1,781
Hawaii: $1,642

$7,730

$11,600

Specified Low-Income
Medicare Beneficiary (SLMB)

All States: $1,269
Alaska: $1,580
Hawaii: $1,548

All States: $1,711
Alaska: $2,133
Hawaii: $1,966

$7,730

$11,600

Qualifying Individual (QI)

All States: $1,426
Alaska: $1,775
Hawaii: $1,638

All States: $1,923
Alaska: $2,398
Hawaii: $2,210

$7,730

$11,600

Qualified Disabled and
Working Individual (QDWI)

All States: $4,249
Alaska: $5,285
Hawaii: $4,879

All States: $5,722
Alaska: $7,129
Hawaii: $6,572

$4,000

$6,000

 

When it comes to Medicare, you have options determining what is best for you. When considering all things, making the right choice can seem overwhelming. If you would like further assistance determining what works best for you, contact the licensed professionals at Medicare Pathways for a no-cost discovery call and consultation.