Understanding Medicare Part A and Part B
Welcome back to our Medicare blog series! In our previous post, we gave an overview of the latest updates on Medicare. Today, we’ll dive deeper into the specifics of Medicare Part A and Part B, covering premiums, deductibles, and what each part offers.
Medicare Part A: Hospital Insurance
What It Covers:
Inpatient hospital care
Skilled nursing facility care
Hospice care
Home health care
Premiums and Deductibles:
Premiums: Most beneficiaries don’t pay a premium for Part A if they or their spouse paid Medicare taxes while working. If you need to purchase Part A, the premium can be up to $506 per month.
Deductibles: The inpatient hospital deductible for 2024 is $1,632 per benefit period. This amount covers your share of costs for the first 60 days of inpatient hospital care in a benefit period.
Cost Sharing:
After the deductible, beneficiaries pay coinsurance amounts based on the length of the hospital stay.
For days 61-90, the coinsurance is $408 per day.
Beyond day 90, the cost is $816 per each “lifetime reserve day” (up to 60 days over your lifetime).
Medicare Part B: Medical Insurance
What It Covers:
Doctor visits
Outpatient care
Preventive services
Durable medical equipment (DME)
Certain home health services
Premiums and Deductibles:
Premiums: The standard monthly premium for Part B in 2024 is $164.90. Higher-income beneficiaries may pay more based on their income.
Deductibles: The annual deductible for Part B is $233. After meeting the deductible, beneficiaries typically pay 20% of the Medicare-approved amount for most doctor services, outpatient therapy, and DME.
Cost Sharing:
Part B covers preventive services at no cost to the beneficiary if the provider accepts Medicare.
Beneficiaries are responsible for 20% of the Medicare-approved amount for services after meeting the deductible.
Why It Matters
Understanding the details of Medicare Part A and Part B is crucial for budgeting your healthcare costs and ensuring you receive the necessary care. These parts form the foundation of your Medicare coverage, providing essential hospital and medical insurance.
Stay tuned for our next post, where we’ll explore the latest changes and benefits in Medicare Advantage (Part C) and Medicare Prescription Drug (Part D) plans. If you have any questions or need assistance, feel free to reach out!
