With Medicare Part A and Part B, you are eligible to enroll 3 months before age 65, the month you turn 65 and 3 months after you turn 65 (you may have to pay a lifetime penalty if you enroll late – if you have credible coverage through an employer or spouse’s employer the penalty will not apply). Original Medicare was split into two parts:
PART A
- Helps pay hospital expenses including: Room & Board, Rehabilitation in a skilled nursing facility, Hospice & Home Heathcare
- There is *NO* cost for Part A if you were employed for an accumulation period of 40 quarters and you paid health care taxes during all quarters
- There is a deductible during 2023 of $1600 per benefit period for hospital stays (a benefit period begins the day you are admitted and continues 60 days after discharge. If you are readmitted after your benefit period ends, you will be charged the deductible period again)
- Extended hospital stays can result in significant out of pocket cost
For Example: 61-90 days $400 per day | 91+ days $800 per day
PART B
- Helps pay doctors, specialists, surgeons, and durable medical equipment
- There is a deductible during 2023 of $226. Medicare will pay 80% of medically necessary healthcare after the deductible. You will be responsible for the remaining 20%
- The monthly cost of *PART B* is based on your income. For most people the cost in 2023 is $164.90. (If your income in 2022 was above $97,000 for an individual, or $194,000 for a joint return, your part B premium will be higher *see chart*)
Part B Premiums by Income
| If your yearly income in 2021 (for what you pain in 2023) was | You pay each month (in 2023) | ||
|---|---|---|---|
| File individual tax return | File joint tax return | File married & separate tax return | |
| $97,000 or less | $194,000 or less | $97,000 or less | $164.90 |
| above $97,000 up to $123,000 | above $194,000 up to $246,000 | Not applicable | $230.80 |
| above $123,000 up to $153,000 | above $246,000 up to $306,000 | Not applicable | $329.70 |
| above $153,000 up to $183,000 | above $306,000 up to $366,000 | Not applicable | $428.60 |
| above $183,000 and less than $500,000 | above $366,000 and less than $750,000 | above $97,000 and less $403,000 | $527.50 |
| $500,000 or above | $750,000 or above | $403,000 or above | $560.50 |
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