Which statement about Part A and Part B premiums is true?

Which statement about Part A and Part B premiums is true?

• A. Part A is premium-free for most; Part B has no monthly premium.
• B. Part A requires a monthly premium for most people.
• C. Part B premiums are always higher than the standard rate.
• D. Part A is premium-free for most; Part B has a standard monthly premium.

Answer: (D)

Medicare premiums for Part A and Part B are set differently: Part A is premium-free for most people who earned Medicare-covered employment for at least 10 years (40 quarters) because their payroll taxes funded hospital coverage. If someone doesn’t meet that 10-year threshold, Part A can require a monthly premium. Part B, on the other hand, is a medical insurance that generally involves a monthly premium, with a standard base amount paid by most enrollees; some individuals with higher income pay more through income-related adjustments. So the statement that Part A is premium-free for most and Part B has a standard monthly premium is true. The other options are incorrect because Part A is not typically premium-free for everyone who hasn’t met the 10-year rule, Part B does have a standard premium, and Part B premiums aren’t always higher than the standard rate for everyone (only higher-income individuals pay more).

Medicare premiums for Part A and Part B are set differently: Part A is premium-free for most people who earned Medicare-covered employment for at least 10 years (40 quarters) because their payroll taxes funded hospital coverage. If someone doesn’t meet that 10-year threshold, Part A can require a monthly premium. Part B, on the other hand, is a medical insurance that generally involves a monthly premium, with a standard base amount paid by most enrollees; some individuals with higher income pay more through income-related adjustments. So the statement that Part A is premium-free for most and Part B has a standard monthly premium is true. The other options are incorrect because Part A is not typically premium-free for everyone who hasn’t met the 10-year rule, Part B does have a standard premium, and Part B premiums aren’t always higher than the standard rate for everyone (only higher-income individuals pay more).