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Offered by: Jennifer Bell – Bell Benefits, LLC

When we work our whole life and see a Medicare deduction coming out of our paychecks with each pay period, we tend to think Medicare will be free when we retire. Unfortunately, that is not the case. Medicare has many moving parts but Original Medicare is made up of Part A & Part B.

If you or a spouse work 40 quarters of your life and pay into Medicare the whole time, you will qualify for “free” Medicare Part A. Part A is what covers you as an inpatient in the hospital or skilled nursing facility.

Part B has a monthly premium that might be adjusted based on your income. Low income individuals can qualify for assistance through the state Medicaid program and have all or some of their Part B premium, co-pays and deductibles paid for.

High income earners will have what is called an Income Related Monthly Adjustment Amount (IRMAA). The IRMAA will be attached to both the Part B & D premiums. This amount is determined by looking at your Modified Adjusted Gross Income from 2 years prior. So for 2020, SSA looks at your 2018 income.

Medicare has a chart that shows the IRMAA rates based on different income ranges. You can find this chart at, hover over the menu option “Your Medicare Costs” and then select the option “Medicare Costs At-a-Glance”. Scroll to the bottom of the page and you will see a link for both Medicare Part B Costs and Medicare Part D Costs.

As always, I’m available to answer questions.

Jennifer Bell | Bell Benefits