Medicare tax quarter question

[lastscer 0]

Hello All, 

 

My parents are thinking about immigrating to the U.S. but are concerned about healthcare options as they are close to being 65 and are also making foreign retirement income that would disqualify them from Medicaid or Obamacare tax credit. I think the best option for my parents is to wait for 5 years and apply for Medicare as they still have health coverage in their home country. However, I am unclear on how does Medicare tax credit work in cases of elderly immigrants who intend to work after coming to the U.S.

 

Specifically, say my parents come to the U.S. around the age of 60 and work part time jobs for 10 years to accumulate 40 tax credit. Will they be able to get Medicare after 5 years by paying Part A premium and become eligible for Medicare without Part A premium once they hit the 10 years mark (40 tax credit)? Or do they have to wait for 10 years to retire because Medicare will not adjust their tax credit status to waive the Part A premium at the 10 year mark if they do not have 40 credit upon retirement in 5 years? 

 

I did a lot of search but cannot find the answer to this question. I know it's confusing so apologies in advance. Anything you could help with is much appreciated!

 

Roger

[databit 328]

3 hours ago, lastscer said:

Specifically, say my parents come to the U.S. around the age of 60 and work part time jobs for 10 years to accumulate 40 tax credit. Will they be able to get Medicare after 5 years by paying Part A premium and become eligible for Medicare without Part A premium once they hit the 10 years mark (40 tax credit)? Or do they have to wait for 10 years to retire because Medicare will not adjust their tax credit status to waive the Part A premium at the 10 year mark if they do not have 40 credit upon retirement in 5 years? 

 

Part A cost will be adjusted downward by the number of tax credits they are able to earn. No free Part A with less than 40 credits:

 

Part A premiums. If you buy Part A, you'll pay up to $413 each month in 2017. If you paid Medicare taxes for less than 30 quarters, the standard Part A premium is $413. If you paid Medicare taxes for 30-39 quarters, the standard Part A premium is $227.

https://www.medicare.gov/your-medicare-costs/part-a-costs/part-a-costs.html

 

Still, a hefty price, PLUS of course you would add the Part B premium, which goes up every year; the standard Part B premium amount in 2017 is $134 (or higher depending on your income).

 

But could they really earn that many credits only working part-time? They would need to earn $100 per week, each.

In 2017, you receive one credit for each $1,300 of earnings, up to the maximum of four credits per year. 

https://www.ssa.gov/pubs/EN-05-10072.pdf