Part 2/7:
To lay the foundation, it’s essential to understand the different parts of Medicare and their corresponding premiums.
Medicare Part A typically comes at no premium for individuals who have contributed to the Medicare tax system for 40 quarters or about 10 years. For those who have not met this requirement, there may be a premium.
Medicare Part B, which covers outpatient care and preventive services, does have a monthly premium determined by your income. The calculation relies on your modified adjusted gross income (Magi), meaning that any additional income from capital gains can increase your premiums.
Medicare Part C, or Advantage Plans, requires that you enroll in Parts A and B and is also based on your income for premium calculations.