What does the Extra Medicare Tax cover?
If you are paying an extra Medicare tax, it is important to know what you’re paying for. Experts say The Additional Medicare Tax helps to pay for certain services of the Affordable Care Act, which include the premium tax credit and other elements. It would help to know that the Affordable Care Act offers some extra advantages to people that apply to Medicare. The advantages include:
- Smaller premiums for Medicare Advantage (Part C) [2] plans
- Lower price for prescription medication
- Closure of the Part D benefit gap, or “doughnut hole”
- Provision of free vaccines [3]
- Provision of free preventive care therapy
- Provision of free testing for heart disease [4], different types of cancers [5], and depression [6]
- More severe care management services
The Additional Medicare Tax is important because it helps cover the price of the new Medicare offers.