Original Medicare consists of two parts: Medicare Part A and Medicare Part B. They both cover certain inpatient and outpatient services. For example, under Medicare Part A, you get coverage for healthcare services such as skilled nursing facility care, hospice care, home healthcare services, and other services. Part B covers outpatient services such as doctor visits, preventive screenings, durable medical equipment, etc.
While Original Medicare, specifically Part B, will have premiums that are required to keep this coverage active, it is possible to qualify for premium-free Part A.
How to Get Premium-Free Part A
Many people who enroll in Medicare Part A and Part B will get premium-free Part A. However, if you do not qualify, you can still enroll in Part A but you will pay monthly premiums. People who do not qualify for premium-free Part A fall within the category of people who did not pay up to 40 quarters (ten years) of Medicare taxes while they were working. However, in most cases, many people meet this requirement ,and thus, qualify for premium-free Part A.
Qualifications
To qualify for premium-free Part A, you must meet certain requirements.
For starters, you must be 65 or older, must meet the other general requirements for Medicare, and, as mentioned, must have paid up to 40 quarters of Medicare taxes while you were employed. If your spouse meets the requirement, i.e., has paid the specified Medicare taxes, you will be eligible to receive this benefit as well.
If you receive disability benefits or retirement benefits from Social Security or the Railroad Retirement Board for a specific amount of time, you can also qualify for this feature, which could also automatically enroll you in Original Medicare, including premium-free Part A.
So, generally, to qualify for premium-free Part A, you or your spouse must have paid Medicare taxes for up to ten years (40 quarters). To get quarters of Medicare taxes, you must pay the specified payroll taxes under the Federal Insurance Contributions Act during your working years. Since most people pay this FICA tax in full, they meet the needed quarters to qualify for premium-free Part A when they enroll in the plan. People who have paid Medicare taxes but not up to 40 quarters will pay reduced premium rates when they enroll in Medicare Part A.
For example, anyone who has paid roughly between 30-39 quarters will pay a 2021 Part A premium of $259. Anything less than 30 quarters will equal to a monthly premium of $471.
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Are you a Florida or Alabama resident and need help with deciding on a Medicare plan but want to learn more about the costs? Sunsurance Agency has you covered! Contact us today at 334-441-3905 for more information.