Medicare is health insurance for people 65 or older, people under 65 with certain disabilities, and people of any age with End-Stage Renal Disease (ESRD) (permanent kidney failure requiring dialysis or a kidney transplant). There are multiple parts of Medicare, and different costs associated with each part. Below are some informational slide-downs that provide you with some basics. Click through each header to see the information.
What are the different parts of Medicare?
- Medicare Part A (Hospital Insurance)
Medicare Part A helps cover:
• Inpatient care in hospitals
• Skilled nursing facility care
• Hospice care
• Home health careYou usually don’t pay a monthly premium for Part A coverage if you or your spouse paid Medicare taxes while working. People who have to buy Part A will pay up to $422 each month in 2018.
Medicare Part A has a $1,340.00 deductible (per 60 day benefit period) for 2018. This deductible amount usually changes each year and is determined by Medicare. Many Medicare Supplement plans cover this deductible. - Medicare Part B (Medical Insurance)
Medicare Part B helps cover:
• Services from doctors and other health care providers
• Outpatient care
• Home health care
• Durable medical equipment
• Some preventive services
You usually pay a monthly premium of $134.00 in 2018 (you will pay more if your 2016 tax income is more than $85,000 individually or $170,000 jointly).
Medicare Part B has an annual deductible of $183.00 for 2018. This deductible amount usually changes each year and is determined by Medicare. Some Medicare Supplement plans cover this deductible. - Medicare Part C (Medicare Advantage)
• Includes all benefits and services covered under Part A and Part B
• Usually includes Medicare prescription drug coverage (Part D) as part of the plan
• Run by Medicare-approved private insurance companies
• May include extra benefits and services for an extra cost
You may only join or leave a Medicare Advantage plan at certain times during the year unless you have a special enrollment period (i.e. moving out of coverage area or involuntarily losing current insurance coverage). - Medicare Part D (Medicare Prescription Drug Coverage)
• Helps cover the cost of prescription drugs
• Run by Medicare-approved private insurance companies
• May help lower your prescription drug costs and help protect against higher costs in the futureNote:
1. If you have a higher income, you might pay more for your Part D coverage.
2. You may owe a late enrollment penalty if at any time after your Initial Enrollment Period is over, there’s a period of 63 or more days in a row when you don’t have Part D or other creditable prescription drug coverage.
What does Medicare cost?
- Medicare Part A
Medicare Part A usually is free if you or your spouse paid medicare taxes while working. People who have to buy part A will pay up to $422 each month in 2018.
Medicare Part A has a $1,340.00 deductible (per 60 day benefit period) for 2018. This deductible amount usually changes each year and is determined by Medicare. Many Medicare Supplement plans cover this deductible. - Medicare Part B
If your yearly income in 2016 was:
Filed individual return: Filed joint return: Filed married & separate tax return: You pay (in 2018): $85,000 or less $170,000 or less $85,000 or less $134.00 above $85,000 up to $107,000 above $170,000 up to $214,000 N/A $187.50 above $107,000 up to $160,000 above $214,000 up to $320,000 N/A $267.90 above $160,000 up to $214,000 above $320,000 up to $428,000 above $85,000 up to $129,000 $348.30 above $214,000 above $428,000 above $129,000 $428.60 Medicare Part B has an annual deductible of $83.00 for 2018. This deductible amount usually changes each year and is determined by Medicare. Some Medicare Supplement plans cover this deductible.
- Medicare Part C
Medicare Part C cost varies depending upon the Medicare Advantage Plans offered by private insurance companies. You still continue to pay your Medicare Part B monthly premium while enrolled in a Medicare Advantage Plan.
- Medicare Part D
If your yearly income in 2016 was:
Filed individual return: Filed joint return: Filed married & separate tax return: You pay (in 2018): $85,000 or less $170,000 or less $85,000 or less Your plan premium above $85,000 up to $107,000 above $170,000 up to $214,000 N/A $13.00 + Your plan premium above $107,000 up to $160,000 above $214,000 up to $320,000 N/A $33.60 + Your plan premium above $160,000 up to $214,000 above $320,000 up to $428,000 above $85,000 up to $129,000 $54.20 + Your plan premium above $214,000 above $428,000 above $129,000 $74.80 + Your plan premium