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 2024 of $1632 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 $408 per day | 91+ days $816 per day
PART B
- Helps pay doctors, specialists, surgeons, and durable medical equipment
- There is a deductible during 2024 of $240. 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 2024 is $174.70. (If your income in 2023 was above $103,000 for an individual, or $206,000 for a joint return, your part B premium will be higher *see chart*)
Part B Premiums by Income
| Based On Your 2023 Income | You Pay In 2024 | ||
|---|---|---|---|
| Beneficiaries who file individual tax returns with modified adjusted gross income | Beneficiaries who file joint tax returns with modified adjusted gross income | Income-Related Montly Adjustment Amount | Total Montly Premium Account |
| Less than or equal to $103,000 | Less than or equal to $206,000 | $0.00 | $174.70 |
| $103,000 and less than or equal to $129,000 | Greater than $206,000 and less than or equal to 258,000 | $69.90 | $244.60 |
| Greater than $129,000 and less than or equal to $161,000 | Greater than 258,000 and less than or equal to $322,000 | $174.70 | $349.40 |
| Greater than $161,000 and less than or equal to $193,000 | Greater than $322,000 and less than or equal to $386,000 | $279.50 | $454.20 |
| Greater than $193,000 and less than or equal to $500,000 | Greater than $386,000 and less than or equal to $750,000 | $384.30 | $559.00 |
| Greater than or equal to $500,000 | Greater than or equal to $750,000 | $419.30 | $594.00 |
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