Finally, you no longer need your employer-sponsored health benefit coverage, or you no longer need to purchase your own individual coverage. Finally, those costs are gone – you no longer have health insurance costs, right? No, wrong!
Here’s the financial breakdown of what you can expect to pay for benefit coverage:
- Part A, which pays for hospital services, is free if either you or your spouse paid Medicare payroll taxes for at least 10 years.
- Part B covers doctor visits and outpatient services, and it comes with a monthly price tag—the standard premium in 2020 is $144.60 per month and is projected to rise to $148.50 in 2021.
- Part C, covers prescription-drug costs, also has a monthly charge that varies depending on which plan you choose; the average Part D basic premium in 2021 will be about $30 a month, roughly the same as this year. In addition to premium costs, you'll also be subject to co-payments, deductibles and other out-of-pocket costs.