Hospital Insurance (Part A)
If you are age 65 or older.--Most people age 65 or older who are citizens or permanent residents of the United States are eligible for free Medicare hospital insurance (Part A). You are eligible at age 65 if you receive or are eligible to receive railroad retirement or social security benefits. (Although the age requirements for some unreduced railroad retirement benefits have risen just like those for social security requirements, beneficiaries are still eligible for Medicare at age 65.)
If you are under age 65.--Before age 65, you are eligible for free Medicare hospital insurance if you have been entitled to monthly benefits based on a total disability for at least 24 months and have a disability insured status under social security law. If you are entitled to monthly benefits based on an occupational disability, and have been granted a disability freeze, you are eligible for Medicare starting with the 30th month after the freeze date or, if later, the 25th month after you became entitled to monthly benefits. If you receive benefits due to occupational disability and have not been granted a disability freeze, you are generally eligible for Medicare hospital insurance at age 65. (The standards for a disability freeze determination follow social security law and are comparable to the medical criteria for granting total disability.) You are also eligible for Medicare if you have Lou Gehrig's disease (amyotrophic lateral sclerosis).
Eligibility for family members.--Under certain conditions, your spouse, divorced spouse, surviving divorced spouse, widow(er), or a dependent parent may be eligible for Medicare hospital insurance based on your work record when he or she turns 65.
Also, disabled widowers under age 65, disabled surviving divorced spouses under age 65, and disabled children may be eligible for Medicare, usually after a 24-month waiting period.
If you have permanent kidney failure.--If you have permanent kidney failure, you are eligible for free Medicare hospital insurance at any age. This is true if you receive maintenance dialysis or a kidney transplant and you are eligible for or are receiving monthly benefits under the railroad retirement or social security system.
In addition, your spouse, divorced spouse or child may be eligible, based on your work record, if she or he has permanent kidney failure and receives maintenance dialysis or a kidney transplant.
Medical Insurance (Part B)
Anyone who is eligible for free Medicare hospital insurance can enroll in Medicare medical insurance (Part B) by paying a monthly premium. The standard premium rate for new enrollees is $134.00 in 2017. However, most enrollees will not pay this amount because of a provision in the law that premiums cannot increase by more than the cost-of-living increase in social security benefits. As a result, the average monthly premium for most individuals who were previously enrolled will be $109.00 in 2017.
Monthly premiums for some beneficiaries are greater depending on their modified adjusted gross income. The income-related Part B premiums for 2017 are $187.50, $267.90, $348.30, or $428.60, depending on how much a beneficiary's modified adjusted gross income exceeds $85,000 (or $170,000 for a married couple). Only beneficiaries whose modified adjusted gross income exceeds $214,000 (or $428,000 for a married couple) pay the highest premium.
The Social Security Administration (SSA) is responsible for determining all income-related monthly adjustment amounts. To do this, SSA uses the most recent tax return information provided by the IRS. For 2017, in most cases that is the beneficiary's 2015 tax return. If that is not available, SSA uses information from the 2014 tax return.