How Much Does Medicare Cost

Medicare is a U.S. federal health insurance program for those 65+ and certain younger individuals with disabilities. It has four parts: A (hospital), B (medical), C (Medicare Advantage), and D (prescription drugs). Funding comes from payroll taxes and premiums, which vary by income. Premiums are based on modified adjusted gross income (MAGI) from two years prior, causing potential "cliff effects." Strategic retirement planning can help manage costs.