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Frequently Asked Questions

How do you calculate Medicare?

Divide the Medicare tax rate by 100 to convert it to a decimal. Using the 1.45 percent Medicare tax, divide 1.45 by 100 to get 0.0145.

Who is eligible for Medicare?

FAQs Categories. Who is eligible for Medicare? Generally, Medicare is available for people age 65 or older, younger people with disabilities and people with End Stage Renal Disease (permanent kidney failure requiring dialysis or transplant). Medicare has two parts, Part A (Hospital Insurance) and Part B (Medicare Insurance).

How does Medicare calculate my premium?

The amount of Medicare premiums are calculated on an annual basis. The formula that Social Security uses includes a number of factors like inflation of medical costs and total adjusted family income.

How are Medicare premiums calculated?

Medicare Part B premiums are calculated based on your income. More specifically, they're based on the modified adjusted gross income (MAGI) reported on your taxes from two years prior. This means your 2021 Medicare Part B premium may be calculated using the income you reported on your 2019 taxes.


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