Medicare premiums can be overwhelming when you’re on a strict budget. However, there are ways to lower your costs if you know the proper steps to take.
Medical Savings Account (MSA)
A Medicare Medical Savings Account (MSA) is the Medicare version of the health savings account (HSA).
You first sign up for a high-deductible Medicare Advantage plan, and then you can open an MSA. Your MSA works a lot like a bank savings account.
MSAs are considered an even better deal than HSAs because Medicare deposits money into your MSA. You can use the money in your MSA to pay for medical expenses before you meet your deductible. Any money left in the account at the end of the year can be used in future years to pay for qualified medical expenses.
Deduct from taxes
You may not know it, but your Medicare premium is eligible to deduct from your taxes in the right circumstances.
For example, you had enough medical expenses to file an itemized deduction for medical expenses on your Form 1040. In fact, most health insurance premiums, including Medicare supplement premiums, can qualify for a Schedule A deduction on your 1040. However, that’s only if your medical spending is over a certain amount.
In 2019, you must have total qualifying expenses that are more than 10 percent of your adjusted gross income. Self-employed people may be able to deduct 100 percent of their premiums.
If you are struggling to pay for your Medicare premiums, there is a Medicare premium assistance program that is offered through Medicare Savings Programs. This program offers help with your Medicare Part B and D premiums.
You can apply for the Medicare Savings Program through the Medicaid office at the Department of Health and Human Services offices in your state.
Before dishing out money, make sure you explore your options and the ways you can save money on Medicare.