Original Medicare includes Medicare Part A (hospital insurance) and Medicare Part B (medical insurance).
Medicare Plan Costs
- Part A (hospital) coverage is free.
- Part B (medical) coverage is relatively inexpensive - generally $104.90 per month in 2015 for single taxpayers with an income of $85,000 or less or couples with $170,000 or less in income.
|If Your Annual Income is...||You Pay|
|File Individual Tax Return||File Joint Tax Return|
|$85,000 or below||$170,000 or below||$104.90*|
|$85,001 - $107,000||$170,001 - $214,000||$146.90*|
|$107,001 - $160,000||$214,001 - $320,000||$209.80*|
|$160,001 - $214,000||$320,001 - $428,000||$272.70*|
|Above $214,000||Above $428,000||$335.70*|
However, due to the limitations of Original Medicare coverage, many people also end up getting supplemental insurance (Medigap) and prescription drug coverage (Medicare Part D plan), which both cost extra.
Supplemental Insurance (Medigap)
Without this extra insurance, you may be stuck with large medical bills to pay.
Unfortunately, the rules for Medicare supplement insurance are different for Medicare beneficiaries under 65 who are on Social Security disability.
- Those with disabilities on Original Medicare may have very limited access to supplemental insurance, depending on the state in which they live.
- Insurance companies can impose up to a six month waiting period for pre-existing conditions before paying benefits.
- This exclusion of coverage usually applies if you were previously uninsured or didn't apply within 63 days after your previous health insurance coverage ended.
Medicare Advantage plans may be a good alternative if you are under 65 and live in a state where your Medigap options are limited. These plans also usually include prescription drug coverage.