One of the benefits of paying taxes to Social Security over the years is a return on your hospital insurance. Those who pay taxes to Social Security for at least forty quarters receive Medicare Part A without paying monthly premiums. This means they pay only toward the Part A deductible if they have hospital visits. For those who are healthy and have no emergencies, this is a significant cost saver.
Based on Taxes
The cost of Medicare Part A monthly premiums is decided based on an individual’s taxes paid to Social Security. For those who paid or whose spouse paid payroll taxes to Social Security for at least 40 quarters through their employment, there are no monthly premiums for Part A.
Those with fewer than 40 quarters of payroll taxes to Social Security pay according to how many quarters they did pay. The monthly premium for those who paid 39 to 30 quarters of payroll taxes is $252. Those who paid fewer than 30 quarters in Social Security payroll taxes owe $458 each month.
Other Eligibility
You can receive premium-free Part A at age 65 if you have already been receiving Social Security retirement benefits or retirement benefits from the Railroad Board. Even if you have not filed for them yet but are eligible for retirement benefits, you can receive premium-free Part A. If you or your spouse has Medicare-covered government employment, you also receive premium-free Part A.
You can qualify for premium-free Part A if you are under 65 if you have received Social Security Disability Insurance for at least 24 months. If you have End-Stage Renal Disease and meet certain requirements, you can also have premium-free Part A. You should sign up for both Part A and Part B if you have ESRD to get the full Medicare benefits for covered dialysis and kidney transplant services. If you have Amyotrophic Lateral Sclerosis (ALS/Lou Gehrig’s Disease) you automatically get Part A and Part B benefits the month your disability benefits begin.
What is Part A?
Medicare Part A is hospital insurance. It covers inpatient care in a hospital, skilled nursing facility care, nursing home care (that’s not long-term or custodial, but is inpatient care), hospice care, and home health care. To see if Medicare covers a service you need, ask your provider and check the official website at medicare.gov. Coverage is based on federal and state laws, national coverage decisions, and local coverage decisions about what is medically necessary and covered in your area.
