It’s important to understand that Medicare does come with costs, and those costs will vary depending on whether you have enrolled in Original Medicare or an Advantage Plan. Medicare Part A is free for most individuals because of payments made through payroll taxes under the Federal Insurance Contributions Act (FICA). You can also qualify for free Medicare Part A due to your spouse’s work history.
Generally, the government will automatically enroll you in Medicare Part A at no cost when you reach 65, as long as you’re already collecting Social Security or Railroad Retirement Benefits. All you need to do is check your mail for your Medicare card, which should arrive about three months prior to your 65th birthday. Coverage is automatic for anyone who receives Social Security benefits, but for those who don’t, enrollment can be done through the SSA website. If you’re not eligible for premium-free Part A, you may be able to purchase the coverage up to $499 each month in 2022. Most people will pay the standard Medicare Part B premium amount, which is $170.10 for 2022.
Under Medicare coverage, you will pay a deductible for your health care before Medicare pays its share. These premiums and out-of-pocket costs will need to be included in your monthly budget. If you miss the correct windows to enroll in Medicare coverage, there may be delays in coverage, or you may get locked into the wrong or inadequate coverage as your care needs change. There is also the risk of financial penalties that will increase premiums, and depending on your annual income levels, you may also pay higher premiums.