Although Medicare Part A is premium-free for most people, other plans have monthly costs. Medicare beneficiaries pay monthly premiums for Medicare Part B, C, and D.
Medicare plans also have the following costs to consider:
- Deductibles – The amount you pay before insurance kicks in
- Copayments – An up-front cost you pay at the time of service
- Coinsurance – The percentage covered by insurance after you meet your deductible
Most people qualify for premium-free Medicare Part A coverage by having at least 40 work credits. As of 2023, enrollees with fewer than 30 quarters of work credits must pay $506 per month and those with between 30 and 39 quarters of work credits must pay $278 per month.
The 2023 deductible for Medicare Part A is $1,600 for each benefit period. Beneficiaries do not have coinsurance for hospital and inpatient stays for the first 60 days. Inpatient stays between 61 and 90 days have a $400 coinsurance per day and $800 each day after 90 days for up to 60 days.
For example, a patient staying in a hospital for 120 days would have the following charges:
- $0 coinsurance for days 1 to 60
- $400 coinsurance for days 61 to 90 ($12,000)
- $800 coinsurance for days 91 to 120 ($24,000)
- Total = $36,000
Coinsurance amounts are slightly different for stays at skilled nursing facilities. After $0 coinsurance for the first 20 days, patients will need to pay $200 per day from days 21 to 100. Then, they will need to cover all costs beyond 100 days.
The premium amount for Medicare Part B depends on enrollees’ incomes two years before applying. For applicants in 2023, for instance, the SSA considers the yearly income for 2021.
For 2023, the Medicare Part B monthly premiums are as follows:
- $164.90 for individual filers earning less than $97,000
- $230.80 for individual filers earning between $97,000 and $123,000
- $329.70 for individual filers earning between $123,000 and $153,000
- $428.60 for individual filers earning between $153,000 and $183,000
- $527.50 for individual filers earning between $183,000 and $500,000
- $560.50 for individual filers earning more than $500,000
Medicare Part B has a $226 annual deductible before the 20% coinsurance. Some services are free, such as clinical laboratory, home health, and preventive services.
Medicare Part D also has tiered premium costs based on prior tax filings. Part D premiums vary by plan, but enrollees may be subject to additional costs if they made more than $97,000. Additional monthly fees range between $12.20 and $76.40. Like Part D, Medicare Advantage premiums vary by plan. The private insurance companies set premium, deductible, copayment, and coinsurance amounts.
By Admin –