Medicare costs fall into two categories: premiums and cost-sharing.

Original Medicare Breakdown and Premiums

Original Medicare has two parts:

Medicare Part A
You will be automatically enrolled in Medicare Part A if you receive Social Security or Railroad Retirement Board benefits. Most people receive Part A at no monthly premium cost. You will need to sign up if you don’t qualify for benefits. If you do not qualify for benefits, you could pay up to $518 (remember this is not the norm). Part A covers things such as:

  • Hospital Stays
  • Hospice Care
  • Skilled Nursing Facility care
  • Home Health Services

Medicare Part B
Most people when they turn 65 are automatically enrolled in Part B. Medicare’s Part B monthly premium is $185, however, this premium will cost more for higher incomes. Part B covers such things as:

  • Doctor’s Office Visits
  • Clinical Research
  • Ambulance Services
  • Mental Health
  • Second Opinions before surgery
  • Durable Medical Equipment

Other Medicare Costs

Cost-sharing is the other aspect of Medicare. Both Medicare Part A and Part B have separate deductibles and coinsurance. Part A has a deductible of $1,676, while Part B has a $257 deductible. Coinsurance is dependent on service, but your Medicare deductible only covers the first 60 days of a hospital stay. After you pay $419 per day for days 61-90, and for sixty lifetime days (meaning when you use these up over your lifetime you pay out of pocket completely) of $838 per day. With part B you usually pay 20% after the deductible is met.

How to Limit Your Medicare Costs

There are different ways in which you can limit your Medicare costs. If you have job-based insurance or other retiree insurance, these generally fill in the gaps of Original Medicare. If you are not eligible for these types of plans you may want to look into either Medigap or Medicare Advantage.

Medicare Advantage exchanges Medicare’s network for a local one with extras like Rx, dental, and vision, all for a low or $0 monthly premium. With Medicare Advantage plans you are still responsible for deductibles, copays, and coinsurance, but limits your out of pocket spending to $6,700. Medigap plans keep the large network of Original Medicare but extend hospitalization up to 365 days, and may cover deductibles, copays, and coinsurance, and add extras like foreign emergency healthcare and cover the first three pints of blood, but have a higher monthly premium.

If you have a low income Medicaid may help with your Medicare costs.

For further questions contact the number above or click here to get a Medicare Health Plan quote.