The Basics of Medicare

11-29-2016Health Care

Medicare is a federal system of health insurance for people over 65 years of age and for certain younger people with disabilities.  Medicare pays for much of the cost of hospital stays and doctor’s office visits for people age 65 and older.  But what does that mean and what do you need to know?

  • There are different parts to Medicare:
    • Medicare Part A is hospital care.  Most people don't pay a premium for Medicare Part A.  Medicare Part A has a $1,316 deductible if you are hospitalized, and additional costs apply if your hospital stay exceeds 60 days.
    • Medicare Part B is medical insurance that covers doctor's visits and outpatient services.  The standard Medicare Part B premium is $134 per month in 2017, but it is primarily new enrollees and those who haven’t yet claimed Social Security who will pay this amount.  Most Social Security recipients will pay $109 per month for Medicare Part B in 2017 because Medicare premiums are prevented by law from increasing faster than Social Security payments for existing recipients. Premium costs are also higher for retirees with a modified adjusted gross income above $85,000 for individuals and $170,000 for couples.  There is a $183 Medicare Part B deductible in 2017, after which you will be charged 20 percent of the Medicare-approved amount for most services. There’s no annual limit on out-of-pocket expenses.
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