While Medicare covers a wide variety of health care services, oftentimes these services come at a cost of either a monthly premium, a deductible, a copayment, or all of the above. Therefore, it is important to know just how much each of the plans will require that you pay both before and after services have been rendered.
Medicare Part A Costs
In most cases, there is no premium cost to receive Medicare Part A. This is because most recipients of Medicare Part A have paid in Medicare taxes throughout their working lives and are eligible to receive this part of Medicare premium free.
If, however, you did not work in an occupation that paid into the Medicare system, then you will be required to pay a Medicare Part A premium. In 2014, the amount of this premium can be up to $426 per month.
There are also certain deductibles and copayments that are involved with Medicare Part A when you receive your benefits. For each benefit period in which you receive Medicare Part A hospital benefits, you will be required to pay, in 2014, a deductible of $1,216.
The coinsurance costs for Medicare Part A that you are required to pay includes $304 per day for hospital inpatient days 61 through 90, and $608 per day for days 91 and beyond per each of your “lifetime reserve days” that follow day 90 in each of your benefit periods. (You will have up to 60 lifetime reserve days throughout your life). After these reserve days have been used up, you will be responsible for paying all of your hospital costs after 90 days in the hospital per benefit period.
Medicare Part B Costs
Regardless of whether or not you paid Medicare taxes, there is a monthly premium for all who are enrolled in Medicare Part B. For most enrollees, this premium amount is $104.90 per month in 2014.
However, the amount could be more than this, depending upon your modified adjusted gross income that was reported on your tax return from two years prior. There is also a Medicare Part B annual deductible of $147 for this year.
Medicare Part C (Medicare Advantage) Costs
Medicare Part C, also referred to as Medicare Advantage, also has a premium cost. This amount will vary because there are numerous different Medicare Advantage plans that are offered by many different private insurance companies.
The cost of a Medicare Advantage plan will depend on a number of different factors such as the services you have chosen to have covered, as well as your demographic area. In addition, there will also be various copayments and deductibles – and, certain charges that are based upon whether you have received your services from a provider who is in or out of the plan’s provider network.
Based on Medicare’s regulations, however, there are certain services such as kidney dialysis and skilled nursing home care, that cannot be charged more in a Medicare Advantage plan than they are in Original Medicare (i.e., Medicare Part A and Part B).
Medicare Part D (Prescription Drug Coverage) Costs
Similar to with Medicare Part C, Medicare Part D costs will also vary, depending upon the plan that you choose to go with. There are a variety of Medicare Part D plans to choose from, and they are offered from numerous different private insurance companies.
The premium costs will vary, based upon the provider that you have chosen, as well as on the actual prescriptions that you take, and whether or not your prescriptions are on the plan’s formulary list of covered drugs.
When choosing a Medicare Part D plan – or any of the Medicare plans – it is important to have a good understanding of exactly what the plan does and does not cover so that you can be prepared for the out-of-pocket costs that you may incur.