- Medicare Plans
- Who qualifies for Medicare
- Why you should have a Medicare Plan
- Who needs Medicare supplemental insurance
- Part A hospital inpatient deductible and coinsurance
- The annual deductible for all Medicare Part B beneficiaries is $198 in 2020, an increase of $13 from the annual deductible of $185 in 2019
- The Medicare Part A inpatient hospital deductible that beneficiaries will pay when admitted to the hospital will be $1,408 in 2020, an increase of $44 from $1,364 in 2019.
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Who qualifies for Medicare
At age 65 most US Citizens qualify for Medicare. Medicare Part A covers your hospital visits. Medicare B covers your doctor visits. Medicare Part D covers your prescription drugs. When you turn 65, you become eligible for Medicare if:
- You either receive or qualify for Social Security benefits
- You live in the United States and are either
- A U.S. citizen or
- A permanent U.S. resident who has lived in the U.S. continuously for five years prior to applying
- Some people may qualify for Medicare if they are not 65. Those who are disabled and have been on Social Security receiving payments for 24 months.
How much you have to pay for your Medicare coverage depends on your work history (if and how long you have paid Medicare taxes). Most Medicare beneficiaries must pay a monthly premium for their medical insurance (Part B). Exception low income Medicare beneficiaries may qualify for help paying Part B and Part D premiums. Beneficiaries with Medicare get their hospital insurance (Part A) premium free of charge.
Why you should have a Medicare Plan
If or when you incur medical bills, either doctor visits or hospitalization, once your deductibles are met Medicare only covers about 80% of these costs. For 2018 the deductible for Medicare Part A is $1316 and Medicare Part B is $183.00. Here’s more detailed breakdown.
Who needs Medicare supplemental insurance
Hospital and doctor bills can add up. Only having Medicare could cost you thousands of dollars. Medicare plans can fill in the gaps that Original Medicare leaves behind. Medicare plans are very affordable, you will want to supplement your Original Medicare with a good Medicare Supplement, Cost or Advantage plan. These types of Medicare plans all will help pay for deductibles and coinsurance that Original Medicare will not cover.
Part A hospital inpatient deductible and coinsurance
In 2018 you will pay:
- $1,316 2018 Medicare deductible for each benefit period
- Days 1-60: $0 coinsurance for each benefit period
- Days 61-90: $329 coinsurance per day of each benefit period
- Days 91 and beyond: $658 coinsurance per each “lifetime reserve day” after day 90 for each benefit period (up to 60 days over your lifetime)
- Beyond lifetime reserve days: all costs
The annual deductible for all Medicare Part B beneficiaries is $198 in 2020, an increase of $13 from the annual deductible of $185 in 2019
Medicare Part B Premiums/Deductibles
Medicare Part B covers physician services, outpatient hospital services, certain home health services, durable medical equipment, and certain other medical and health services not covered by Medicare Part A.
Each year the Medicare premiums, deductibles, and copayment rates are adjusted according to the Social Security Act. For 2020, the Medicare Part B monthly premiums and the annual deductible are higher than the 2019 amounts. The standard monthly premium for Medicare Part B enrollees will be $144.60 for 2020, an increase of $9.10 from $135.50 in 2019. The annual deductible for all Medicare Part B beneficiaries is $198 in 2020, an increase of $13 from the annual deductible of $185 in 2019.
The increase in the Part B premiums and deductible is largely due to rising spending on physician-administered drugs. These higher costs have a ripple effect and result in higher Part B premiums and deductible.
From day one, President Trump has made it a top priority to lower drug prices. Currently, for Part B, the law requires CMS to pay the average sales price for a drug and also pays physicians a percentage of a drug’s sale price. This incentivizes drug companies to set prices higher and for physicians to prescribe more expensive drugs – because that leads to a higher Medicare payment. Through the President’s drug pricing blueprint, the Trump Administration is working to lower drug prices in Medicare Part B drugs.
- The Part C monthly premium varies by plan. Compare costs for specific Part C plans.
- Part D premium monthly premium varies by plan (higher-income consumers may pay more). Compare costs for specific Part D plans.
The Medicare Part A inpatient hospital deductible that beneficiaries will pay when admitted to the hospital will be $1,408 in 2020, an increase of $44 from $1,364 in 2019.
The Part A inpatient hospital deductible covers beneficiaries’ share of costs for the first 60 days of Medicare-covered inpatient hospital care in a benefit period. In 2020, beneficiaries must pay a coinsurance amount of $352 per day for the 61st through 90th day of a hospitalization ($341 in 2019) in a benefit period and $704 per day for lifetime reserve days ($682 in 2019). For beneficiaries in skilled nursing facilities, the daily coinsurance for days 21 through 100 of extended care services in a benefit period will be $176.00 in 2020 ($170.50 in 2019).