Hypothetical Medicare costs for low income SS recipient (supplement, social security, states)

[josie13]

I would like to get some idea of how much Medicare costs for a person receiving $1500/month in Social Security payments ($18k/year), with no additional income.

How much do the various Medicare parts cost?

I think Part A is premium-free.

Does a low-income person pay the whole $121 Part B premium?

What about Part D?

If a person is on Medicaid and ages into Medicare, does Medicaid assist in paying premiums at all?

I'm not retirement age yet, but I'm trying to figure out how much will be deducted from my checks for Medicare premiums.

[freemkt]

There is an "extra help" provision in Part D that pays all or part of the Part D premium for low income Medicare recipients. I think $1500 a month qualifies you for some help with the monthly premium but not sure. With Extra Help there is still a nominal co-pay for prescriptions which I've found to average between $1 and $2. Part D plans vary in the drugs covered and the co-pays, so before you sign up for a plan make sure any drugs you must take are covered by the plan. (Plans issue a yearly list of everything they cover, it's called a formulary.)

For most people the Part B monthly premium is something like $106.50 - it's higher for high-income recipients.

If your income is low enough to qualify, states have programs that pay your Part B premium. Since Medicare pays only 80% of medical bills, you have to cover the remaining 20%, which is what Medicare Supplement or Medigap insurance is for. I pay about $150 for this.

However, if your income is VERY low, your state might pay both your Part B premium and the 20% that Medicare doesn't pay.

Eligibility varies by state and $1500 a month might or might not qualify you for assistance with Part B or that 20%.