At Medicare Supplements Insurance Agency, our goal is to simplify the process of selecting your Medicare supplement plan. We know that when it comes to your health and future, the money you save and spend on Medicare-related costs is extremely important to keep track of. Below, we break down the costs associated with Medicare. As always, if you have further questions, don’t hesitate to contact us online or by phone.
Usually there is no monthly premium for Medicare Part A if you or your spouse paid Medicare taxes for at least 10 years (40 quarters). This Medicare is sometimes called “premium free” Part A.
The deductible of Medicare Part A for hospital admittance is $1600.00. Generally, the deductible is a per occurrence deductible, meaning each hospital admission requires a first-day deductible of $1600.00. There is only one exception to this general rule: if within 60 days of being released from the hospital you need to be readmitted for the exact same reason for your initial admission, then Medicare will waive the deductible. Otherwise, you must pay the deductible again.
During the first 60 days of a hospital stay, Medicare Part A will pay 100% of the expenses associated with your care.
From days 61-90 of your hospital stay, you will be responsible for the coinsurance amount of $400.00 per day for each of these 30 days.
From days 91-150 of your hospital stay (lifetime reserve days), you will be responsible for your coinsurance amount of $800.00 per day for each of these 60 days.
The standard Medicare Part B premium that most people (90-95%) will pay in 2023 is $164.90 per month. If your modified adjusted gross income (MAGI) as reported on your IRS tax return for the previous 2 years is above a certain amount, you will pay an additional charge for your Medicare Part B premium. This additional charge is known as the Income Related Monthly Adjustment Amount (IRMAA). See chart below.
|Filed individual tax return (2021)||Filed joint tax return (2021)||Filed married & separate tax return (2021)||You pay each month (2023)|
|$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 than $403,000||$527.50|
|$500,000 or above||$750,000 and above||$403,000 and above||$560.50|
The deductible for Medicare Part B for 2023 is $226.00. The Medicare Part B deductible is an annual deductible, unlike the per-occurrence deductible of Medicare Part A. This is a calendar year deductible beginning on January 1 and ending on December 31.
After you pay your Medicare Part B deductible, you typically pay 20% of the Medicare allowable charges for the following:
Excess charges occur when you visit a doctor that does not accept Medicare Assignment. If a doctor does not accept Medicare Assignment but does accept you as a patient, the doctor is allowed to collect an additional 15% above the Medicare allowable charge. That is 15% in addition to the 20% coinsurance.
If you have additional questions about Medicare Part A, Medicare Part B, or anything related to Medicare supplement plans, please contact our friendly staff at Medicare Supplements Insurance Agency today!