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 2023, Medicare charges a $1,600 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 2023, Medicare charges a $226 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 $164.90 in 2023. 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.