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 2018 of $1340 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
      • 60-90 days $345 per day
      • 90+ days    $670 per day

PART B

  • Helps pay doctors, specialists, surgeons, and durable medical equipment
  • There is a deductible during 2018 of $183. 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 2018 is $134. (If your income in 2016 was above $85,000 for an individual, or $170,000 for  a joint return, your part B premium will be higher *see chart*)

Part B Premiums by Income

2016 Yearly Income:You Pay in 2018
File Individual Tax ReturnsFile Joint Tax Returns
$85,000 or less$170,000 or less$134
above $85,000 up to $107,000above $170,000 up to $214,000$187.50
above $107,000 up to $160,000above $214,000 up to $320,000$267.90
above $160,000 up to $214,000above $320,000 up to $428,000$348.30
above $214,000above $428,000428.60

We are here to help. Contact us today for a free, no obligation quote or to simply have your Medicare questions answered.