Most people on Medicare report that they are very satisfied with their health care coverage — but the program is complicated. Medicare features an alphabet soup of plans, coverage choices, premium levels and enrollment rules.
The New York Times recently invited readers to submit their questions about Medicare. Today, we’re responding to some of the most frequent ones.
What kind of monthly premiums for either original Medicare or Advantage can I realistically plan on budgeting, especially considering inflation?
Health care inflation has been running about double the rate of general inflation. HealthView Services, a research and consulting firm, expects annual health care inflation to run an average of 5 percent to 5.5 percent through most of the coming decade.
The standard monthly premium for Part B (outpatient services) this year is $135.50; Medicare’s trustees forecast annual increases averaging 5.9 percent through 2028. Enrollees in traditional Medicare can expect inflation of 6 percent if inflation for Medigap premiums is included.
Among Medicare Advantage plans (Part C), 49 percent of plans that include drug coverage will charge no additional premium beyond Part B next year, according to the Kaiser Family Foundation. Plans that do have additional premiums for drugs will charge an average of $36 next year, Kaiser says.
According to HealthView, a 65-year-old couple using original Medicare this year will spend around $10,300 on premiums for prescription drugs and Medigap, and various out-of-pocket costs. In 20 years, their costs are projected to be around $33,000 annually (future dollars).
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