Medicare Part A and Part B helps cover costs for hospitalization, doctor visits, and other medical services. In most cases, these begin the first day of the month in which you turn 65. Whether or not you automatically receive these Medicare benefits depends on whether you are already receiving Social Security benefits. 

If you’re not sure if Part A and Part B cover what you need, or you have any other questions about Medicare, our agents in Cary would be happy to assist you. Don’t hesitate to reach out to us – our expertise is always free, whether or not you decide to enroll in a plan through us. We’re here to serve you and help meet your unique needs.

What Does Part A Cover?

Medicare Part A is hospital insurance that helps with inpatient hospital care, skilled nursing facility care (rehab only), hospice and home health care. 

Most people who have paid into Medicare already through tax deductions on paychecks are not required to pay monthly premiums for Part A. If you have paid Medicare taxes for at least ten years while working, you receive Part A at no cost to you. 

As of 2020, Medicare charges a $1,408 annual deductible for Part A. Supplemental insurance can ease the financial burden of deductibles – and can help with copayments and coinsurance, too.

What Does Part B Cover?

Medicare Part B is medical insurance that helps with medically necessary doctor services and outpatient care. It also covers preventive services that help you maintain your health and keep your illnesses from getting worse. 

As of 2020, Medicare charges a $198 annual deductible for Part B. Medicare will pay 80% of medically necessary health care after you pay this deductible, and you will be responsible for the other 20%.

Please note that if you don’t sign up for Part B during the initial enrollment period, you may be required to pay a late enrollment penalty. 

The cost for Part B is dependent on your income, but the standard monthly premium for most people is $144.60 in 2020. If you receive retirement benefits, your Part B premiums are deducted from your monthly payments – but if you do not receive these benefits, SSA will send quarterly bills. For your convenience, we have included a chart with the Part B premiums.

Part B Premiums By Income:

If your yearly income in 2017 (for what you pay in 2019) was:

File individual tax returnFile joint tax returnFile married & separate tax returnYou pay each month (in 2019)
$85,000 or less

$170,000 or less$85,000 or less$135.50
above $85,000 up to $107,000above $170,000 up to $214,000Not applicable$189.60
above $107,000 up to $133,500above $214,000 up to $267,000Not applicable$270.90
above $133,500 up to $160,000above $267,000 up to $320,000Not applicable$352.20
above $160,000 and less than $500,000above $320,000 and less than $750,000above $85,000 and less than $415,000$433.40
$500,000 or above$750,000 and above$415,000 and above$460.50