Medicare beneficiaries of Parts B and D may be confused when their monthly premium costs are higher than they had anticipated, which may be due to the Income-Related Medicare Adjustment Amount or IRMAA. Below we will go over how this additional premium is calculated and what can be done to minimize how much you pay in IRMAA-based premiums.
While Medicare Parts A & B provide well-rounded coverage for individuals, there are some loopholes in Part A’s Skilled Nursing Care coverage that one should be aware of. To qualify, Medicare’s criteria for coverage is a three-day minimum hospital inpatient stay. The keyword here is “inpatient” which is where Medicare’s Admissions and Observation rules come in to play.
For individuals approaching retirement, medical expenses can be one of the main concerns when organizing cash flows. Having the right coverage that won’t break the bank in insurance premiums is a must, as not having any coverage at all can lead some other issues.