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 2016. The new (2016) annual deductible for Part A is now $1,288 for a hospital stay of 1 – 60 days. Your costs for extended hospital stays are $322 per day for days 61 – 90, $644 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 $161.00 per day for days 21 – 100.
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 2016 Part A premium is reduced to $407 per month. If you have worked for more than 30 up to 39 quarters your Part A premium is $240 per month.
Medicare Part A – 2015 Cost Changes
|Medicare Part A – Hospital Insurance Hospitalization (Per Benefit Period)||Effective January 1, 2014, Medicare Will Pay All Except Amount Indicated||Effective January 1, 2015, Medicare Will Pay All Except Amount Indicated||Effective January 1, 2016, Medicare Will Pay All Except Amount Indicated|
|1 to 60 days||$1,216, the Part A deductible||$1,260, the Part A deductible||$1,288, the Part A deductible|
|61st to 90th day||$304 per day||$315 per day||$322 per day|
|91st to 150th day||$608 per day||$630 per day||$644 per day|
|Skilled Nursing Facility|
|21st to 100th day||$152.00 per day||$157.50 per day||$161.00 per day|
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 (2016) annual deductible for Part B is at $166.
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 (2016) monthly standard premium for Part B will stay the same at $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 2015 $147 the annual deductible.