There are no income limits to receive Medicare benefits, however you can pay more for your premiums based on what your income level is. If you have limited income, you might qualify for assistance in paying for your Medicare premiums.
Different Ranges of Income in Retirement
Medicare is available for all Americans ages 65 and older, regardless of their income. But, if your income is $91,000.00 in the year that you turn 63, according to current standards, you will pay more in premiums than what the average standard is. The standard is $170.10. Again, if you make above $91,000.00, that is when IRMAA kicks in.
Medicare Part A is typically free and covers hospital stays, inpatient stays, and nursing facilities. Medicare Part B is your medical insurance. This is what covers your doctor’s office visits, ambulance rides, vaccinations, and medical supplies. Together, Part A and Part B make up the traditional Medicare that most of us think of.
If you are 65 this year, they will look at what your Modified Adjusted Gross Income was in the year that you turned 63. If your income was above that $91,000.00 mark, you would get an Income Related Monthly Adjustment Amount (IRMAA). When we look at your retirement planning, it is important to know what age you want to retire, because it does affect your Medicare premium.
Lastly, your Medicare Part D premium is your prescription drug coverage. They have their own separate premium, and the national average is $33.37. There will be an increased amount depending on your income level. These are questions that we really must go into when we are looking at your plan. To learn more about this or to schedule a meeting with one of our advisors, give our office a call at (803) 782-0671 to schedule a complimentary meeting.
