Original Medicare Part A & B
Original Medicare consists of Part A (hospitalization) and Part B (doctors). It is individual health insurance offered by the federal government to U.S. citizens and other eligible individuals based on age, disability, or qualifying medical condition.
What About IRMAA?
Part A is free if you or your spouse have paid Medicare taxes for 40 calendar quarters or more. Part B requires a monthly premium of a base amount, and if your Modified Adjusted Gross Income on your tax return is higher than certain levels, you will pay a higher premium – this is called your Income Related Monthly Adjustment Amount.
Implementing Medicare Strategies
Some will implement Medicare planning by having only Original Part A and Part B and assume the financial risk of paying a portion of regular medical expenses with no annual out-of-pocket limits.
Others will implement additional Medicare insurance strategies by purchasing supplemental coverage that provides various benefits as well as managing the cost sharing risks of your ongoing health care expenses.
