If you have high medical expenses, you probably ask yourself “how can I reduce my monthly Medicare premiums?” or “how do I save on healthcare?”

 

You’re not alone. Healthcare in the U.S. can cost thousands of dollars for remedial care, even with insurance. In 2020, the average national cost for health insurance is $456 for an individual and $1,152 for a family per month. However, costs vary among the wide selection of health plans. Understanding the relationship between health coverage and cost can help you choose the right health insurance for you (via eHealth). 

 

The good news is that the U.S. government accounts for these expenses by subsidizing programs to vulnerable populations, like Medicare for seniors and those with disabilities. If you or a loved one is over 65, has been receiving disability benefits from Social Security Administration or has End Stage Renal Disease, you could qualify for Medicare (via HHS.gov). If you are not currently enrolled in Medicare, read our article about when to sign up. 

 

These programs contribute tremendously to cost savings on healthcare. Here is a quick glance of average monthly premiums for Medicare beneficiaries: 

 

Part A premium Most people don’t pay a monthly premium for Part A (sometimes called “premium-free Part A“). If you buy Part A, you’ll pay up to $471 each month in 2021. If you paid Medicare taxes for less than 30 quarters, the standard Part A premium is $471. If you paid Medicare taxes for 30-39 quarters, the standard Part A premium is $259.

 
Part A hospital inpatient deductible and coinsurance
  • $1,484 deductible for each benefit period
  • Days 1-60: $0 coinsurance for each benefit period
  • Days 61-90: $371 coinsurance per day of each benefit period
  • Days 91 and beyond: $742 coinsurance per each “lifetime reserve day” after day 90 for each benefit period (up to 60 days over your lifetime)
  • Beyond lifetime reserve days: all costs

 
Part B premium  

The standard Part B premium amount is $148.50 (or higher depending on your income).

 
Part B deductible and coinsurance  

$203. After your deductible is met, you typically pay 20% of the Medicare-Approved Amount for most doctor services (including most doctor services while you’re a hospital inpatient), outpatient therapy, and durable medical equipment (dme)

 
Part C premium  

The Part C monthly  premium varies by plan. Compare costs for specific Part C plans.

 
Part D premium  

The Part D monthly premium varies by plan (higher-income consumers may pay more). Compare costs for specific Part D plans.

 

(via Medicare.gov)

 

However, the savings don’t stop here! There are also privately-held insurance plans designed to complement or replace Medicare that can provide much better savings alternatives. Medicare Advantage plans (otherwise known as Part C) and Medicare Supplement plans are two options for further decreasing healthcare costs, and adding benefits to your coverage. 

Depending on your medical needs, Medicare supplement plans can save anywhere from hundreds to thousands of dollars per year. They will cover a wide variety of costs like:

 

  • An additional 365 days of hospital expenses, potentially worth up to $4,000 a day
  • Care from a Skilled Nursing Facility, where you could pay an additional $14,080
  • The first three pints of blood, about $150 each
  • Copays and deductibles associated with every doctor visit

 

Medicare supplement plans can cover 100% of these costs and many others. 

 

Medicare Advantage plans cover everything offered by Medicare Part A and Part B, along with added benefits such as dental, vision and hearing. On average, the monthly premiums for Medicare Advantage in 2021 are $148.50 for Medicare Part B and $25 for an Advantage plan. However, some Advantage plan premiums cost nothing, while others cost considerably more than the average. A person can choose from low, medium, or high premium plans, depending on their preferred coverage (via Medical News Today). 

 

Speak with a representative at Hubby Health to discuss how you can save on your healthcare expenses.