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Medicare Advantage Part C
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Medicare Part A & B

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 IndicatedEffective January 1, 2015, Medicare Will Pay All Except Amount IndicatedEffective 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.

Brian Schroeder
Brian Schroeder
Brian J Schroeder – Independent Broker - (925) 513-7778