Medicare Archives - American Fidelity

Get More Out of Your Medicare Supplement Plan: What You May Need to Know

dev on July 15, 2025

Medicare is the federal health insurance program for people age 65 or older, people under age 65 with certain disabilities, and people of any age with End Stage Renal Disease (ESRD). However, it may sometimes leave beneficiaries responsible for out-of-pocket expenses such as deductibles, copayments, and coinsurance.

To help manage these costs, Medicare Supplement plans, also known as Medigap plans, are available. These plans are designed to help fill coverage gaps and help ensure that healthcare expenses remain predictable and manageable.

What is a Medicare Supplement plan?

Medicare Supplement Plans, or Medigap, are private insurance policies that help cover your portion of the out-of-pocket costs left after Original Medicare (Part A and Part B) has paid.

Unlike Medicare Advantage plans, which provide an alternative way to receive Medicare benefits, Medigap policies work alongside Original Medicare to help cover expenses such as deductibles, copayments, and coinsurance.

This coverage helps provide more peace of mind, especially for those who require ongoing medical care and/or who prefer more predictable out-of-pocket medical costs.

What do Medicare Supplement plans cover?

Medigap plans offer a variety of coverage options that differ based on the plan selected. Many Medigap policies help cover:

Medicare Part A coinsurance and hospital costs after Medicare benefits are used (up to an additional 365 days)
Medicare Part B coinsurance or copayments, which may include doctor’s visits and outpatient services
First three pints of blood needed for a medical procedure
Hospice care coinsurance or copayments under Part A

Depending on the plan chosen, Medigap policies may also cover skilled nursing facility care copays, foreign travel emergencies, and Part B excess charges.

What isn’t covered under Medigap Insurance plans?

While Medigap policies can help cover many costs that Original Medicare d oes not, there are still some gaps:

Routine vision and dental care , hearing aids, and long-term care services are not generally covered.
Prescription drugs are also not included, making it essential to consider enrolling in a separate Medicare Part D plan to get medication coverage and avoid a late enrollment premium penalty.

Depending on the plan chosen, Medigap policies may also cover skilled nursing facility care copays, foreign travel emergencies, and Part B excess charges.

Types of Medigap Plans

There are multiple types of Medigap plans with policies offering different levels of coverage. These differences allow beneficiaries to choose a Medigap plan that aligns with their budget and healthcare needs, ranging from basic coverage (Plan A or Plan B) to more comprehensive protection (Plan G or N).

Plan A	Provides the most basic coverage, including Part A coinsurance, hospital costs, and Part B coinsurance. Note: Plan A does not cover deductibles or additional benefits like skilled nursing care.
Plan B	Like Plan A but also covers the Medicare Part A deductible.
Plan C	Plan C is a Medigap policy that provides more comprehensive coverage, including costs like Part A and B deductibles, coinsurance, and skilled nursing care. Note: Plan C does not cover Part B excess charges and is only available to those who were eligible for Medicare before January 1, 2020, but not yet enrolled.
Plan F & Plan G	These are the most comprehensive plans, covering almost all out-of-pocket costs, including the Part A hospital deductible, Part A and B coinsurance, Part B excess charges and foreign travel emergency care. Note: Plan F is only available to those who were eligible for Medicare before January 1, 2020, but not yet enrolled.
Plan D	Offers coverage for many out-of-pocket costs, like coinsurance and the Part A deductible, but not the Part B deductible or excess charges.
Plan K & Plan L	Offer lower premiums with higher out-of-pocket costs. They cover a percentage of certain benefits (e.g., Plan K covers 50% and Plan L covers 75% of the 20% not covered by Part B) rather than full coverage.
Plan M	Covers half of the Part A deductible and offers partial coverage for some other benefits but does not cover the Part B deductible.
Plan N	Provides coverage like Plan G but requires copayments for doctor visits and emergency room visits. It does not cover the Part B deductible or excess charges.

How much do Medigap plans cost?

Monthly premiums for Medigap plans vary based on several factors, including age, location, and the insurance provider .

It is important to understand the monthly premium payments with potential out-of-pocket expenses when receiving medical care.

How do you choose a Medigap plan?

Selecting the right Medigap plan depends on personal health needs and financial considerations. Here are some factors to consider:

Determine the level of coverage you require and how much you are willing to pay for monthly premiums.
Review your healthcare usage and financial situation to decide whether lower premiums with higher out-of-pocket costs or higher premiums with lower costs are a better fit.
Consult a licensed insurance agent who is -certified to help you explore your options and make a more informed decision based on your specific situation.

Need help navigating Medicare Supplement options? Reach out today.

How to Enroll in a Medigap Plan

Enrolling in a Medigap plan can be a straightforward process, but timing and eligibility requirements are key factors to consider.

The best time to buy a Medigap policy is during the six-month Medigap Open Enrollment Period, which begins the first month you are 65 or older and enrolled in Medicare Part B. During this time, you can enroll in any Medigap plan available in your state without facing medical underwriting. If you miss this period, switching plans later may involve health screenings, which could affect plan premiums and your ability to enroll in a plan.

Is Medicare Supplemental Insurance right for you?

Medigap policies may be ideal for:

Individuals with chronic health conditions or who have frequent doctor visits and prefer more predictable medical costs
Retirees who prefer to budget for healthcare expenses with fixed costs each month
High-income earners who may be subject to Medicare surcharges and want to minimize out-of-pocket expenses

Medicare Supplement Insurance can be an excellent choice for those who want to avoid high out-of-pocket expenses in retirement. It helps cover costs that Original Medicare doesn’t, making it an ideal option for those with frequent healthcare needs or who wish to have stable and predictable medical expenses.

Whether you’re looking for comprehensive coverage or a more budget-friendly option, it’s crucial to assess your situation carefully.

Don’t Leave Your Medicare Coverage to Chance.

The Medigap policy professionals with American Fidelity Retirement Services can help you explore and compare Medicare Supplement plans and find the right match for your health and finances. Reach out now and take the first step toward additional coverage.

This blog is up to date as of February 2025 and has not been updated for changes in the law, administration or current events.

This information is general in nature and should not be considered financial, legal or tax advice. Consult an attorney or a tax professional regarding your specific situation.

What is Medicare Advantage?

dev on June 8, 2025

Medicare Advantage, also known as Medicare Part C, is a health insurance program offered by private companies that contract with Medicare. It provides an alternative way for Medicare beneficiaries to receive Medicare benefits. Medicare Advantage plans often include additional benefits beyond what Original Medicare (Part A and Part B) offers, such as prescription drug coverage, vision, dental, and wellness programs.

These plans typically have networks of doctors and hospitals participants must use to receive the full benefits. Medicare Advantage plans are required to cover all the same services as Original Medicare. However, plans may have different costs and restrictions, like requiring prior authorization before covering an outpatient surgery, for example.

How does Medicare Advantage work?

Medicare Advantage works by providing similar coverage as Original Medicare (Part A Hospital and Part B Medical), often with additional benefits and services provided by private insurance companies.

Here’s how Medicare Advantage generally works:

Enrollment: To be eligible for a Medicare Advantage plan, you must first be enrolled in You can then enroll in a Medicare Advantage plan during specific enrollment periods.
Plan Selection: There are different types of Medicare Advantage plans, such as Health Maintenance Organization (HMO), Preferred Provider Organization (PPO), Private Fee-for-Service (PFFS), and Special Needs Plans (SNPs). You can choose a plan that suits your healthcare needs and preferences.

Coverage and Benefits: Medicare Advantage plans provide coverage for all Medicare-covered services, including hospital stays, doctor visits, and medical procedures. Many plans may offer extra benefits such as prescription drug coverage, dental and vision care, hearing aids, and fitness programs.

Provider Networks: : Medicare Advantage plans typically have a network of healthcare providers, including doctors, hospitals, and specialists.

You may need to choose a primary care physician (PCP) and get referrals to see specialists within the network. Some plans may also offer out-of-network coverage, but it can be more expensive.

Costs: Medicare Advantage plans have premiums, deductibles, and copayments that vary depending on the plan. It’s important to review and compare the costs of different plans to understand your out-of-pocket expenses.
Medicare Advantage vs. Original MedicareIf you choose to enroll in a Medicare Advantage plan, you will still be enrolled in Medicare, but your Medicare benefits will be administered by the private insurance company offering the plan. Take a look at this helpful chart comparing Original Medicare to Medicare Advantage. You must continue to pay your Medicare Part B premium, along with any additional premium (if any) required by the Medicare Advantage plan.
Before deciding on a plan, it’s important to carefully review the details of each Medicare Advantage plan to understand its coverage, costs, and network limitations.

How much does a Medicare Advantage plan cost?

The cost of a Medicare Advantage plan can vary depending on several factors, including the specific plan you choose, your location, and the coverage options it offers. Here are some common costs associated with Medicare Advantage plans:

Premiums: Medicare Advantage plans may have a monthly premium in addition to the Medicare Part B premium that you must continue to pay. However, some plans have $0 premiums, while others may have higher premiums for more comprehensive coverage.
Deductibles: Some Medicare Advantage plans have an annual deductible that you must pay before the plan starts covering your healthcare costs. The deductible amount can vary between plans.
Copayments/Coinsurance: Medicare Advantage plans typically require you to pay copayments or coinsurance for various healthcare services, such as doctor visits, hospital stays, and prescription drugs. These costs can vary depending on the specific service and plan.
Out-of-Pocket Maximum: Medicare Advantage plans have an out-of-pocket maximum, which is the maximum amount you would have to pay for covered services each year. Once you reach this limit, the plan will cover all additional medical costs for the remainder of the year.

Always review and compare the costs of different Medicare Advantage plans available in your area to understand how they align with your healthcare needs and budget. Keep in mind that costs can change each year, so it’s essential to review your plan annually during the Medicare Open Enrollment Period (October 15 – December 7) to ensure it still meets your needs.

How and when can I enroll in a Medicare Advantage plan?

You can enroll in a Medicare Advantage plan during specific enrollment periods. Here are the different enrollment options available:

Initial Enrollment Period (IEP): This is the seven-month period that begins three months before your 65th birthday month, includes your birthday month, and ends three months after your birthday month. During this period, you can enroll in a Medicare Advantage plan for the first time.
Open Enrollment Period (OEP): The OEP takes place from October 15 to December 7 each year. During this period, you can enroll in a Medicare Advantage plan, switch from one Medicare Advantage plan to another, or switch from a Medicare Advantage plan back to Original Medicare.
Medicare Advantage Open Enrollment Period (MA OEP): The MA OEP occurs January 1 to March 31 each year. During this time, if you are already enrolled in a Medicare Advantage plan, you can switch to a different Medicare Advantage plan or return to Original Medicare with or without a standalone Medicare Part D prescription drug plan.
Special Enrollment Periods (SEPs): SEPs are available for individuals who experience qualifying life events, such as moving out of the plan’s service area, losing other coverage, or becoming eligible for Medicaid. These events may allow you to enroll in or make changes to your Medicare Advantage plan outside of the standard enrollment periods.
It’s important to note that the availability of specific Medicare Advantage plans can vary by location. To find out if you are eligible to enroll and explore Medicare Advantage plan options in your area, visit our website, enter your zip code, and fill out the form or schedule an appointment with an agent.

This blog is up to date as of March 2025 and has not been updated for changes in the law, administration or current events.

This information is general in nature and should not be considered financial, legal or tax advice. Consult an attorney or a tax professional regarding your specific situation.

What is Original Medicare?

dev on April 9, 2025

Original Medicare refers to the federal health insurance program funded by the government for individuals 65 and older, as well as for certain people of any age with disabilities, permanent kidney failure (ESRD), or ALS (amyotrophic lateral sclerosis).

Original Medicare consists of two parts: Part A (hospital insurance) and Part B (medical insurance).

Medicare Part A covers inpatient hospital care, skilled nursing facility care, hospice care, and some home health care services. Most people do not need to pay a premium for Part A, as they have already paid into the Medicare system through payroll taxes while working.

Medicare Part B covers medically necessary services, including doctor visits, preventive services, outpatient care, durable medical equipment, and some home health care services. Part B requires a monthly premium ($185 for most people in 2025), which is based on income. Some people may experience a higher premium when the Social Security Administration determines the Income-Related Monthly Adjustment Amount (IRMAA) that needs to be added to the monthly premium.

Original Medicare allows beneficiaries to choose any doctor, hospital, or healthcare provider that accepts Medicare, anywhere in the United States. However, it does not cover all healthcare costs, and individuals may still have out-of-pocket expenses such as deductibles, copayments, and coinsurance.

Many individuals choose to supplement their Original Medicare coverage with a private Medicare Supplement (Medigap) plan, to help cover some of these out-of-pocket costs. Others may choose to receive their Medicare benefits through a Medicare Advantage Plan (also called Part C) administered by private insurance companies.

What does Medicare Part A cover?

Medicare Part A covers various hospital-related services, such as:

Inpatient Hospital Care: This includes semi-private rooms, meals, general nursing care, medications, and other necessary hospital services and supplies.
Skilled Nursing Facility (SNF) Care: Medicare covers skilled nursing care in a certified SNF if you’ve been in the hospital for three days in a row or more. This can include rehabilitation services, such as physical therapy, occupational therapy, and speech-language pathology services.
Hospice Care: Part A covers hospice care for individuals with a terminal illness, providing pain relief, symptom management, and support services. This can be provided in a hospice facility, hospital, nursing home, or at home.
Home Health Care: Medicare covers part-time skilled nursing care, physical therapy, occupational therapy, speech-language pathology services, medical social services, and home health aide services. This type of care is typically for individuals who are homebound, and it must be provided by a Medicare-certified home health agency.

While Part A covers these services, it does not cover all associated costs. Deductibles, copayments, and coinsurance may still apply. Additionally, Part A has limitations on the number of days covered for certain services, such as hospital stays and skilled nursing facility care.

How much does Medicare Part A cost?

For most people, Medicare Part A does not require a monthly premium. This is because individuals who have worked and paid Medicare taxes for enough quarters (40 quarters or 10 years) typically receive premium-free Part A coverage. This is often referred to as “premium-free Part A.”

However, if you do not qualify for premium-free Part A, you may still be able to enroll in Part A by paying a monthly premium. The premium amount depends on the number of quarters you have paid Medicare taxes. In 2025, the premium for individuals who have paid Medicare taxes for 30-39 quarters is $285 per month, and for individuals who have paid Medicare taxes for fewer than 30 quarters, the premium is $518 per month.

Even with premium-free Part A, there are still other costs associated with Part A, such as deductibles, coinsurance, and copayments. For example, in 2025, the deductible for each 60-day hospital benefit period is $1,676, and there are coinsurance amounts for hospital stays beyond a certain number of consecutive days (days 61–150).

Check with the official Medicare website medicare.gov to get the most accurate and up-to-date information on the cost of Part A, as it can change from year to year.

What does Medicare Part B cover?

Medicare Part B covers a wide range of medical services and supplies that are considered medically necessary, such as:

Doctor Visits: This includes visits to doctors, specialists, and other healthcare providers. It covers services such as examinations, consultations, and preventive screenings.
Outpatient Care: Part B covers medically necessary services received in an outpatient setting, such as outpatient surgeries, diagnostic tests, and laboratory services.

Preventive Services: Medicare Part B provides coverage for a variety of preventive services, including vaccinations, screenings for various conditions (such as cancer, diabetes, and cardiovascular diseases), and counseling for certain behavioral and mental health issues.
Durable Medical Equipment (DME): Part B covers medically necessary DME, such as wheelchairs, walkers, oxygen equipment, and other supplies needed for medical purposes.
Ambulance Services: Medicare covers emergency and non-emergency ambulance transportation when it is considered medically necessary.
Outpatient Mental Health Services: Part B covers mental health services received on an outpatient basis, including individual and group therapy, psychiatric evaluations, and medication management.
Home Health Services: Medicare Part B covers certain medically necessary services provided by a Medicare-certified home health agency, including part-time skilled nursing care, physical therapy, occupational therapy, speech-language pathology services, and medical social services.

How much does Medicare Part B cost?

The cost of Medicare Part B can vary depending on several factors, including your income and the year you enroll. Here are the general cost components of Part B:

Monthly Premium: Most people pay the standard monthly premium for Part B, which is determined by the government each year. The standard premium for 2025 is $185.00. However, higher-income individuals may have to pay an Income-Related Monthly Adjustment Amount (IRMAA), which is an additional amount added to the standard premium.
Deductible: Part B has an annual deductible that you must pay before Medicare starts covering your medical expenses. For 2025, the deductible is $257.
Coinsurance or Copayments: After you meet the deductible, you typically pay 20% of the Medicare-approved amount for most services covered by Part B. There may also be copayments for certain services.

Check with the official Medicare website to get the most accurate and up-to-date information on the cost of Part B, as it can change from year to year.

How do I enroll in Medicare Part A and Part B?

To enroll in Medicare Parts A and B, follow these steps:

Determine your eligibility: Generally, individuals are eligible for Medicare when they turn 65. However, some individuals may be eligible earlier due to a disability or certain medical conditions. You can check your eligibility by visiting the official Medicare website or contacting the Social Security Administration.
Initial Enrollment Period (IEP): If you’re not automatically enrolled in Medicare, you have an Initial Enrollment Period (IEP) to sign up. Your IEP begins three months before your 65th birthday and ends three months after the month of your 65th birthday. It’s recommended to enroll during the first three months of your IEP to ensure coverage starts on time, unless you are not retiring yet and have other creditable coverage like a group health plan.
Decide if you want both Parts A and B: Medicare Part A is hospital insurance, and Medicare Part B is medical insurance. Most people choose to enroll in both parts, but you have the option to enroll in Part A only if you meet certain criteria, such as having other health coverage.
Choose your enrollment method: There are different ways to enroll in Medicare:
- Online: Visit the Social Security Administration’s website (ssa.gov) to complete your enrollment online.
- Phone: Call the Social Security Administration at 1-800-772-1213 to enroll over the phone.
- In-person: Visit your local Social Security office to enroll in person. It’s recommended to schedule an appointment in advance.
Gather necessary documents: When enrolling, you may need certain documents, such as your Social Security number, proof of U.S. citizenship or lawful presence, and information about your current health insurance coverage
Review your Medicare coverage options: While enrolling in Parts A and B provides basic coverage, you may also want to consider additional coverage options, such as a Medicare Supplement (Medigap) plan paired with a Part D prescription plan or a Medicare Advantage all-in-one type plan, to help cover out-of-pocket costs.

Contact a Medicare agent to enroll in Medicare Supplement, Medicare Advantage, or Medicare Part D.

The process and deadlines for enrollment may vary depending on individual circumstances. Visit the official Medicare website or contact Medicare directly for personalized guidance and to ensure you have all the necessary information for a successful enrollment process.

This blog is up to date as of February 2025 and has not been updated for changes in the law, administration or current events.
This information is general in nature and should not be considered financial, legal or tax advice. Consult an attorney or a tax professional regarding your specific situation.

What is Medicare Part D?

dev on April 9, 2025

Medicare Part D is a prescription drug coverage program funded by the U.S. government for Medicare beneficiaries. It is a voluntary program that helps pay for the costs of prescription drugs.

Medicare Part D plans are offered by private insurance companies approved by Medicare. These plans can vary in terms of costs, coverage, and the list of drugs they cover.

What’s the history of Medicare Part D?

The prescription drug benefit program of Medicare was a bipartisan effort signed into law by President George W. Bush on December 8, 2003, as part of the Medicare Prescription Drug, Improvement, and Modernization Act (MMA) of 2003. The program officially started on January 1, 2006.

Prior to the implementation of Medicare Part D, Medicare did not provide coverage for outpatient prescription drugs and only a Medicare Supplement plans offered limited prescription drug coverage that was not widely available.

The introduction of Part D aimed to provide all Medicare beneficiaries with access to affordable prescription drug coverage and help alleviate the financial burden of medication costs.

Since its inception, Medicare Part D has undergone changes and updates to improve its coverage and address issues such as the coverage gap (donut hole). These changes have included adjustments to the cost-sharing structure, the inclusion of more preventive services, elimination of the coverage gap in 2024, and a notably lower out-of-pocket maximum for 2025.

How does Medicare Part D work?

Medicare Part D works as a standalone prescription drug plan (PDP) if you are receiving your hospital and medical benefits from Original Medicare or as part of a Medicare Advantage plan (Part C).

Enrollment Periods: Eligible individuals can enroll in a Medicare Part D plan during their initial enrollment period when they first become eligible for Medicare, during the annual open enrollment period (October 15 to December 7) or in some cases during a special enrollment period (SEP) like when moving to a new area.
Beneficiaries are able choose a Medicare Part D plan that suits their needs. Plans vary in terms of monthly premiums, deductibles, and the list of drugs covered (formulary). It’s important to review the plan’s Annual Notice of Changes (ANOC) each year to discover any changes in the formulary and out-of-pocket costs.
Once enrolled, beneficiaries typically pay a monthly premium, an annual deductible (if applicable), and a portion of the cost of their medications. After reaching a certain limit in out-of-pocket drug costs, beneficiaries enter the catastrophic coverage phase.
Catastrophic Coverage: At this stage, the beneficiary has covered drugs fully paid by the plan for the remainder of the calendar year.
Medicare Prescription Payment Plan: Beginning in 2025, Medicare beneficiaries will be able to spread out their out-of-pocket prescription drug costs throughout the year.

How much does a Medicare Part D plan cost?

The cost of a Medicare Part D plan can vary depending on several factors, including the specific plan chosen, the region where you live, and your income.

Here are some common costs associated with Medicare Part D

Monthly Premium: Part D plans typically have a monthly premium that you need to pay to maintain your coverage. Premium amounts can vary significantly depending on the plan and can range from around $0 to $100 or more in 2025. Premiums can be reduced for low-income beneficiaries or raised for higher-income beneficiaries (see IRMAA chart below).

2025 IRMAA Chart

If your filing status and yearly income in 2023 was:

Single, filing individually	Married, filing jointly	Married, filing separately	What you pay each month (in 2025)
$106,000 or less	$212,000 or less	$106,000 or less	Your plan premium
Above $106,000 up to $133,000	Above $212,000 up to $266,000	Not applicable	$13.70 + your plan premium
Above $133,000 up to $167,000	Above $266,000 up to $334,000	Not applicable	$35.30 + your plan premium
Above $167,000 up to $200,000	Above $334,000 up to $400,000	Not applicable	$57.00 + your plan premium
Above $200,000 and less than $500,000	Above $400,000 and less than $750,000	Above $106,000 and less than $394,000	$78.60 + your plan premium
$500,000 or above	$750,000 or above	$394,000 or above	$85.80 + your plan premium

Source: https://www.medicare.gov/health-drug-plans/part-d/basics/costs

Annual Deductible: Part D plans may have an annual deductible, which is the amount you pay out-of-pocket before the plan starts covering your medications. Deductibles can vary, but in 2025, they cannot exceed $590.
Copayments or Coinsurance: Once you meet your deductible, you will typically pay a portion of the cost of each medication through either copayments (fixed amounts) or coinsurance (percentage of the medication cost). The specific amounts will depend on the plan’s formulary and drug tiers.
Catastrophic Coverage: Once you have spent a certain amount out-of-pocket in a calendar year (maximum $2,000 in 2025), you no longer pay any additional costs.

The specifics of a Medicare Part D plan structure and costs can vary depending on the plan selected. Consult with a Medicare representative or insurance broker for additional guidance on a specific plan.

This blog is up to date as of March 2025 and has not been updated for changes in the law, administration or current events.

This information is general in nature and should not be considered financial, legal or tax advice. Consult an attorney or a tax professional regarding your specific situation.

What You Need to Know About Medicare and HSAs

dev on April 9, 2025

If you or your spouse is approaching Medicare age, you may be wondering how that will affect your Health Savings Account (HSA). It’s vital to understand how Medicare and HSAs interact because there are fines and penalties for making improper contributions. Here’s what to know to help protect your finances and health while also helping to ensure that you’re following Medicare rules.

Understanding Medicare

Medicare is a federal health insurance program for people who are 65 and older, people under age 65 with certain disabilities, and people of any age with End-Stage Renal Disease (ESRD). You can enroll in Medicare when you turn 65, whether or not you’re still working, and even if you choose to defer your Social Security benefits.

If you take Social Security benefits before 65, you’ll automatically be enrolled in Medicare Part A and Part B on your 65th birthday. However, you will have to specifically enroll in Part D, Medicare Supplement, or Medicare Advantage plans if you want those benefits.

Health Savings Accounts (HSAs) Explained

An HSA is a specific type of savings account that allows you to set aside money tax-free to pay for eligible medical expenses of an eligible individual, their spouse, and their tax dependents. Only those who have a qualified high-deductible health plan (HDHP) and no other disqualifying coverage can contribute to an HSA.

That means you can’t contribute to an HSA with another type of health insurance plan, including Medicare.

No HSA Contributions with Medicare Enrollment

Once you’re enrolled in Medicare, you are no longer allowed to contribute to an HSA. In fact, you should stop your contributions six months before your Medicare enrollment to avoid penalties. However, if your spouse isn’t yet eligible for Medicare and has an HDHP, they may be able to open their own HSA and continue to contribute, allowing them to save money and help protect themselves from rising health care costs.

HSA Balance Options in Retirement

Even though you can no longer contribute to an HSA once you enroll in Medicare, your HSA funds are still yours to use. For instance, you can:

Pay eligible medical expenses tax-free
Pay Medicare premiums for Medicare Part B, Part D, and Medicare Advantage
Use for other expenses when you reach 65 (taxes apply)

Important note: There are no joint HSA accounts, but you and your spouse can agree to use funds from either one of your individual accounts, as long as those funds are used for a qualifying purpose.

With quality, trusted information about Medicare, American Fidelity Retirement Services (AFRS) can help you get the best plan for your needs and understand the do’s and don’ts of HSAs during your retirement years. We’re here to help protect what you’ve worked for.

This blog is up to date as of March 2025 and has not been updated for changes in the law, administration or current events.

This information is general in nature and should not be considered financial, legal or tax advice. Consult an attorney or a tax professional regarding your specific situation.

Source:

Medicare and HSAs Don’t Mix; December 2024, accessed 1/24/2025

Understanding and Preparing for IRMAA

dev on April 9, 2025

As you approach Medicare enrollment, it’s important to understand the benefits, how much it will cost you, and whether it’s right for your needs.

An important thing to know about Medicare is the income-related monthly adjustment amount (IRMAA). An IRMAA is an additional premium paid by higher-income Medicare beneficiaries and may affect how much you pay for specific parts of Medicare. Here’s what to know, so you can be prepared for IRMAA costs and how they may affect you.

Costs and Benefits of Medicare Part A

Medicare Part A generally doesn’t have a monthly premium. That’s because most people have worked at least 40 quarters of Medicare-covered employment. This is determined by the Social Security Administration, and of people meet the requirement for premium-free Part A. You won’t have to worry about a premium increase with Part A, but the deductible often increases.¹ For example, the Part A deductible for 2025 is $1,676 compared to $1,632 in 2024.²

Costs and Benefit of Medicare Part B and Part D

As you can see in the charts below, the premiums for Medicare Part B and Part D will change based on your income tax filing status and modified adjusted gross income from the two years prior to enrolling in Medicare. While higher incomes mean higher premiums for Part B and Part D, the increasing IRMAA costs generally apply to most, if not all, income categories.

Part B Coverage

Single, filing individually	Married, filing jointly	Married, filing separately	Total monthly premium amount
$106,000 or less	$212,000 or less	$106,000 or less	$185.00
Above $106,000 up to $133,000	Above $212,000, up to $266,000	Not applicable	$259.00
Above $133,000 up to $167,000	Above $266,000, up to $334,000	Not applicable	$370.00
Above $167,000 up to $200,000	Above $334,000, up to $400,000	Not applicable	Not applicable
Above $200,000 and less than $500,000	Above $400,000 and less than $750,000	Above $106,000 and less than $394,000	$591.90
$500,000 or above	$750,000 or above	$394,000 or above	$628.90

Chart Sources:
https://www.medicare.gov/basics/costs/medicare-costs
https://www.cms.gov/newsroom/fact-sheets/2025-medicare-parts-b-premiums-and-deductibles

Part D Coverage

Medicare Part D is prescription drug coverage and is sold by private insurance companies. Your plan premium is determined by where you live and what prescription medication you take. In addition to your plan premium, you may also have an additional IRMAA amount.

If your yearly income in 2023 (for what you pay in 2025) was:

Single, filing individually	Married, filing jointly	Married, filing separately	IRMAA (in 2025)
$106,000 or less	$212,000 or less	$106,000 or less	Your plan premium
Above $106,000 up to $133,000	Above $212,000, up to $266,000	Not applicable	$13.70 + your plan premium
Above $133,000 up to $167,000	Above $266,000, up to $334,000	Not applicable	$35.30 + your plan premium
Above $167,000 up to $200,000	Above $334,000, up to $400,000	Not applicable	$57.00 + your plan premium
Above $200,000 and less than $500,000	Above $400,000 and less than $750,000	Above $106,000 and less than $394,000	$78.60 + your plan premium
$500,000 or above	$750,000 or above	$394,000 or above	$85.80+ your plan premium

Chart source: https://www.medicare.gov/basics/costs/medicare-costs

More information on Medicare costs IRMAA premiums

Educating yourself about the various parts of Medicare will help you understand the benefits and how IRMAA affects the premium you pay. In short, Medicare premiums typically increase each year, and you’ll want to make sure you’re budgeting for the increase in your retirement financial plan. Even though the increase may seem small, the rising premiums and deductibles can take a toll on your finances over time.

Schedule Your Appointment to Get Coverage Today

With our retirement planning services, you can get the support and information you need to better prepare for your later years. Get in touch with us today and let us help you find the right Medicare plan for your income, needs, and goals.

This blog is up to date as of February 2025 and has not been updated for changes in the law, administration or current events.

This information is general in nature and should not be considered financial, legal or tax advice. Consult an attorney or a tax professional regarding your specific situation.

Sources:

¹2025 Medicare Parts A & B Premiums and Deductibles; November 2024, accessed 2/21/2025

²Medicare Costs, Medicare.gov; accessed 2/12/2025

Get More Out of Your Medicare Supplement Plan: What You May Need to Know

What is a Medicare Supplement plan?

What do Medicare Supplement plans cover?

What isn’t covered under Medigap Insurance plans?

Types of Medigap Plans

How much do Medigap plans cost?

How do you choose a Medigap plan?

How to Enroll in a Medigap Plan

Is Medicare Supplemental Insurance right for you?

Don’t Leave Your Medicare Coverage to Chance.

What is Medicare Advantage?

How does Medicare Advantage work?

How much does a Medicare Advantage plan cost?

How and when can I enroll in a Medicare Advantage plan?

What is Original Medicare?

What does Medicare Part A cover?

How much does Medicare Part A cost?

What does Medicare Part B cover?

How much does Medicare Part B cost?

How do I enroll in Medicare Part A and Part B?

What is Medicare Part D?

What’s the history of Medicare Part D?

How does Medicare Part D work?

How much does a Medicare Part D plan cost?

2025 IRMAA Chart

What You Need to Know About Medicare and HSAs

Understanding Medicare

Health Savings Accounts (HSAs) Explained

No HSA Contributions with Medicare Enrollment

HSA Balance Options in Retirement

Understanding and Preparing for IRMAA

Costs and Benefits of Medicare Part A

Costs and Benefit of Medicare Part B and Part D

Part D Coverage

Schedule Your Appointment to Get Coverage Today

Medicare Plans

Non-Medicare Insurance

Retirement Planning

Webinars

Connect with us