My Neighbor Pays Nothing for Medicare
By chaundra
Did your neighbor tell you that she doesn’t pay anything for Medicare? Take that with a grain of salt.
Most people have premium-free Part A, because if you’ve worked at least 40 quarters (basically, worked for at least 10 years), you’ve probably paid for Part A through your FICA payroll taxes. Look at your paystub and you’ll see your payment to Medicare.
Most people pay a premium for Part B. The Part B premium changes most years. The new premium is released around Thanksgiving and is determined according to the Social Security Act. There is a standard monthly premium, but some people pay more and some pay less than the standard amount because the premium can be adjusted up or down based on your modified adjusted gross income (MAGI).
In the case of your neighbor, it’s possible that she doesn’t realize that she’s paying a premium for Part B because it’s automatically deducted from her Social Security check before it’s direct deposited into her bank account. It’s also possible that her income is low and she receives financial assistance from her state via the Medicare Savings Program (MSP). MSPs help low-income seniors by paying their Part B premium, and sometimes even they even pay Medicare deductibles, coinsurance and copays. These programs are income- and asset-based, and can vary by state.
If you think you might also qualify for financial assistance you should apply through your local Human Services office. The state will determine the level of help you might receive. Another option is to apply for the federal Extra Help program, and let them send your information to your state. The Medicare Teachers can help you with that process; just give us a call at (866) READY65.