Jesse Smedley is a Principal of Oakbridge Insurance and the founder of iHealthBrokers. He founded iHealthBrokers in 2007, and Oakbridge acquired iHealthBrokers in 2025. He has spent nearly two decades teaching people how to save money on their health insurance and navigate Medicare, and he is the author of Medicare A to Z: Your Roadmap to Medicare.
Medicare comes with it some unexpected expenses. Here are some ways you could save money on your Medicare coverage.
IRMAA
Original Medicare is divided into two parts, Part A & Part B. There are separate premiums, deductibles and copays for each part.
Part A is your hospital insurance. Most people do not have a premium to pay for Part A. This is if you have qualified for premium-free Medicare Part A based on your or your spouse’s work history. To do this, you or your spouse must have paid Medicare payroll taxes through your employment for at least 40 quarters, which is basically ten years.
If you do not qualify for premium-free Part A, it can be pretty pricey.
Part B will always have a monthly premium. In 2023, the base monthly premium for Part b is 164.90. BUT it can be more based on your income.
However, these are based on your income from two years ago! So, if you have retired and are now making less money than while you were working, you need to file form SSA-44, Medicare Income Related Monthly Adjustment Amount.
Medicare Savings Programs
Now although for most Medicare beneficiaries, your base premium begins at 164.90, for some people, you may be able to receive financial assistance with your Part B and possibly Part A premium if applicable. These are Medicare Savings Programs.
There are four Medicare Savings programs designed to offer people with limited assets and income financial assistance with Medicare. Not only will they lower your premiums, but they will also offer assistance with deductibles and copays as well. They may also offer you Extra Help with Part D plans which are prescription drug plans.
Enrollment
If your income doesn’t qualify you for additional assistance and you are already paying the base premiums, there are still additional ways in which you can save money. Namely by avoiding some crucial enrollment mistakes.
First, you should avoid the Part B late enrollment penalty.
You will first become eligible for Medicare when you turn 65. You will likely be automatically enrolled. But if not or if you defer Part B, make sure to enroll in a timely manner or you may fall victim to the Part B Late Enrollment Penalty.
Another crucial enrollment period that you don’t want to miss pertains to Medigap. In the first 6 months after you turn 65 and enroll in Part B, you will first be eligible for a Medicare Supplement Plan. During this time, you will not be subject to medical underwriting. So, you will pay the lowest possible price for your plan.
If you enroll after this time period, perhaps when you are older or have developed more significant health issues, you may be subject to medical underwriting. This means you could be charged a significantly higher monthly premium. You may even be denied outright.
