What exactly is meant by "Buying Into" Medicare?

[Bandit]

What does that term mean? How much does it cost? Does the cost depend upon your age and/or your physical condition, or is it all the same cost for every person?

[Emit]

1. Medicare Premiums for 2009:

Part A: (Hospital Insurance) Premium
Most people do not pay a monthly Part A premium because they or a spouse has 40 or more quarters of Medicare-covered employment.
*
The Part A premium is $244.00 per month for people having 30-39 quarters of Medicare-covered employment.
*
The Part A premium is $443.00 per month for people who are not otherwise eligible for premium-free hospital insurance and have less than 30 quarters of Medicare-covered employment.

Part B: (Medical Insurance) Premium

$96.40 per month*

~snip~

Part B: (covers Medicare eligible physician services, outpatient hospital services, certain home health services, durable medical equipment)

*
$135.00 per year. (Note: You pay 20% of the Medicare-approved amount for services after you meet the $135.00 deductible.)

Additional information about the Medicare premiums, deductibles, and coinsurance rates for 2009 is available in the September 19, 2008 Fact Sheet titled, "CMS Announces Medicare Premiums, Deductibles for 2009" on the www.cms.gov website.

*Note: If your income is above $85,000 (single) or $170,000 (married couple), then your Medicare Part B premium may be higher than $96.40 per month. For additional details, see our FAQ titled: " Medicare Part B Monthly Premiums in 2009"

http://questions.medicare.gov/cgi-bin/medicare.cfg/php/enduser/std_adp.php?p_faqid=2100

[valerief]

3. Thanks! nt

[rucky]

2. Not sure about the context...

but there's been talk about using Medicare as the "Public Option" - implying that if you're not yet of age, you can still pay extra and get into the program early.

Right now the amount we pay into medicare is a percentage of our income, so I assume the plan would be to continue on a sliding scale like that, but pay a bigger chunk to get immediate benefits. I'd opt-in!

[valerief]

4. I would, too, if it were possible. We'd be nuts not to! nt

[DURHAM D]

5. When you turn 65 you enroll in Medicare.

When you enroll you begin to pay $96.40 a month for the privilege. If you are receiving SS that monthly amount is deducted from your check before it is sent/given to you. If you are not yet receiving SS the government bills you and you pay quarterly in advance. Most people currently enrolling in Medicare are not yet receiving SS because full retirement age is 66.

Note: If your earned income is over $85,000 you pay $134.90 a month. I think the next break is at $105,00 where you pay like $170 a month and so on.


Note: The $96.40 is for what they now refer to as Original Medicare - Parts A & B (Hospitalization and doctor visits/tests). Original medicare has deductibles and coinsurance (20%) payments that seniors pay out of pocket. The $96.40 does not enroll you in Part D - medication. That is an additional $38.00 a month if you want to enroll.

Edit: Emit has good info above about how people turning 65 can enroll in Part A and pay the higher monthly amount if they have not paid in for at least 10 years. Upon enrolling in Part A and paying that premium they would still owe the $96.40 in addition for Part B if I understand it correctly.