National Medicare Education Week
July 19, 2015
Medicare Advantage Plan Members Grew
July 19, 2015

Cost Increases to Medicare Part A and Part B

The Center For Medicare And Medicaid Services, CMS, recently announced cost increases to Original Medicare Part A and Part B.

These increases should come as no big surprise to Medicare beneficiaries. Health care costs continue to rise, albeit at a slightly reduced pace from previous years.

Medicare Part A is hospital insurance. It helps pay for inpatient hospital care, skilled nursing facility care, hospice care, ambulance services, and some home health care. Deductibles and per diem charges for Part A are increasing for 2013. The new (2013) annual deductible for Part A is now $1,184 for a hospital stay of 1 Р60 days. Your costs for extended hospital stays are $296 per day for days 61 Р90, $592 per day for days 91 thru 150, and 100% of the cost for days 150 or more. Skilled Nursing facility care is $0 per day for the first 20 days, and $148.00 per day for days 21 Р100.

You are eligible for Part A at $0 premium per month if you have worked for 10 years, and have paid into Medicare for 40 quarters. If you have worked fewer than 30 quarters the Part A premium is $441 per month. If you have worked for more than 30 up to 39 quarters your Part A premium is $243 per month.

Medicare Part B is medical insurance. It helps pay for doctors’ services, outpatient hospital care, inpatient medications, and some other medical services that Part A doesn’t cover, like durable medical equipment and supplies. You must be enrolled in Part A to be eligible for Part B. The new (2013) annual deductible for Part B is $147.

Most people elect to enroll in Part B as soon as they become eligible. If you elect not to enroll, be advised that the penalty for not getting Part B will go up 10% for each full year that you could have had it, but did not enroll. Exceptions are staying in your employers group health plan, a Railroad Retirement plan, or a government employee retirement plan.

The new (2013) monthly standard premium for Part B has been increased to $104.90 per month per person for individuals earning less than $85,000 per year, and for couples earning less than $170,000 filing jointly. CMS sets higher Medicare Part B premiums based upon income and filing status. Higher monthly premiums range from $46.10 to $253.70 depending upon your income. You will pay 20% of the Medicare-approved amount for medical services, and 50% of the Medicare-approved amount for mental health services after meeting the 2013 $147 the annual deductible.

If you are new to Medicare, you can avoid paying many of these out of pocket costs by purchasing a Medicare supplement, or medi-gap plan. During the first 6 months of your Part B eligibility you have guarantee issue rights. You can not be denied enrollment because of pre-existing conditions.

Or you may¬†elect to enroll in a Medicare Advantage plan with all the benefits of Parts A and B and including Part D prescription drug coverage. To qualify you must reside in the plan’s service area, have both Parts A & B, and not have ESRD, or kidney failure.

If this is confusing to you, and it is to most people, you may want to get some useful information and helpful advice from an experienced AdvoCare senior insurance agent.

The Center For Medicare And Medicaid Services, CMS, recently announced cost increases to Original Medicare Part A and Part B.

These increases should come as no big surprise to Medicare beneficiaries. Health care costs continue to rise, albeit at a slightly reduced pace from previous years.

Medicare Part A is hospital insurance. It helps pay for inpatient hospital care, skilled nursing facility care, hospice care, ambulance services, and some home health care. Deductibles and per diem charges for Part A are increasing for 2013. The new (2013) annual deductible for Part A is now $1,184 for a hospital stay of 1 Р60 days. Your costs for extended hospital stays are $296 per day for days 61 Р90, $592 per day for days 91 thru 150, and 100% of the cost for days 150 or more. Skilled Nursing facility care is $0 per day for the first 20 days, and $148.00 per day for days 21 Р100.

You are eligible for Part A at $0 premium per month if you have worked for 10 years, and have paid into Medicare for 40 quarters. If you have worked fewer than 30 quarters the Part A premium is $441 per month. If you have worked for more than 30 up to 39 quarters your Part A premium is $243 per month.

Medicare Part B is medical insurance. It helps pay for doctors’ services, outpatient hospital care, inpatient medications, and some other medical services that Part A doesn’t cover, like durable medical equipment and supplies. You must be enrolled in Part A to be eligible for Part B. The new (2013) annual deductible for Part B is $147.

Most people elect to enroll in Part B as soon as they become eligible. If you elect not to enroll, be advised that the penalty for not getting Part B will go up 10% for each full year that you could have had it, but did not enroll. Exceptions are staying in your employers group health plan, a Railroad Retirement plan, or a government employee retirement plan.

The new (2013) monthly standard premium for Part B has been increased to $104.90 per month per person for individuals earning less than $85,000 per year, and for couples earning less than $170,000 filing jointly. CMS sets higher Medicare Part B premiums based upon income and filing status. Higher monthly premiums range from $46.10 to $253.70 depending upon your income. You will pay 20% of the Medicare-approved amount for medical services, and 50% of the Medicare-approved amount for mental health services after meeting the 2013 $147 the annual deductible.

If you are new to Medicare, you can avoid paying many of these out of pocket costs by purchasing a Medicare supplement, or medi-gap plan. During the first 6 months of your Part B eligibility you have guarantee issue rights. You can not be denied enrollment because of pre-existing conditions.

Or you may¬†elect to enroll in a Medicare Advantage plan with all the benefits of Parts A and B and including Part D prescription drug coverage. To qualify you must reside in the plan’s service area, have both Parts A & B, and not have ESRD, or kidney failure.

If this is confusing to you, and it is to most people, you may want to get some useful information and helpful advice from an experienced AdvoCare senior insurance agent.

Brian Schroeder
Brian Schroeder
Brian J Schroeder ‚Äď Independent Broker - (925) 513-7778