What Is The Cost Of Medicare Part A?

What Is The Cost Of Medicare Part A?

The standard Part A premium is deducted from a worker's Social Security check or is paid by the worker if he or she is self-employed. The standard Part A premium in 2017 is $535 per month (or $6,935 per year) for people who are covered by Social Security. This is 7% of the $750 monthly Social Security check (or $87,000 per year). The reduction in Social Security benefits is not taxed.

If a person is not covered under Social Security, he or she pays the standard premium. If the person has coverage by another government program, the other program usually pays the standard premium.

Medicare Part B

What is the cost of medicare part b?

Medicare Part B covers outpatient care, such as doctor's visits, as well as some services that are not covered by Part A. These services include laboratory tests, x-rays, and some home health care.

The standard Part B premium is deducted from a worker's Social Security check or is paid by the worker if he or she is self-employed. The standard Part B premium in 2017 is $121.80 per month (or $1,460 per year). This is 15% of the $750 monthly Social Security check (or $111,000 per year).

The reduction in Social Security benefits is not taxed.

Medicare Part C

What is the cost of medicare part c?

Medicare Part C is a type of Medicare private insurance. It provides the same coverage as Part A and Part B, but it is paid for by a private health plan.

Medicare Part D

What is the cost of medicare part d?

Medicare Part D covers prescription drugs. The standard Part D premium is paid by the worker or his or her employer, depending on which coverage the worker chooses. The standard Part D premium in 2017 is $35.50 per month (or $429 per year). This is 1% of the $750 monthly Social Security check (or $7,000 per year). The reduction in Social Security benefits is not taxed.

People with limited incomes may be eligible for extra help paying for their Medicare Part D premiums and prescription drug costs.

Medicare Cost-Sharing

What are Medicare cost-sharing?

Cost-sharing is when a person has to pay a portion of the costs of his or her health care services. Medicare has three levels of cost-sharing:

Copayments

Cost-sharing includes copayments. A person must pay a copayment for each health care service he or she gets that is covered by Medicare. A copayment is a flat dollar amount for each health care service that is covered. The amount of the copayment depends on what type of Medicare Part A or Part B the person has. Medicare Advantage plans may charge an additional copayment. A copayment is not a deductible.

Deductibles

What is a deductible?

A deductible is the amount of the cost of health care services that a person must pay before Medicare starts to pay for covered services. The amount a person pays depends on what type of Medicare Part A or Part B he or she has. Medicare Advantage plans may charge an additional deductible. A deductible is not a copayment.

For most people, the Part A hospital deductible is $1,316 in 2017.

The Part B deductible in 2017 is $183 per year.

For most people, the Part D deductible is $405 in 2017.

Copayments and deductibles are limited to $2,960 per year.

For full details on how much a person pays in copayments and deductibles, and exceptions, see Medicare Choices.

Excess Charges

What are excess charges?

Medicare protects people from excessive charges by health care providers.

Medicare will not pay for some charges for which Medicare beneficiaries are held responsible. Some health care providers charge a lot more than what Medicare allows. These are called "excess charges."

The law protects Medicare beneficiaries from paying more than the allowed amount for a service.

The amount Medicare pays is the allowed amount. The health care provider must agree to accept that amount as full payment for the service.

What happens if a health care provider charges more than Medicare allows?

When a health care provider charges more than Medicare allows, a Medicare beneficiary is not responsible for the extra cost. The provider is responsible for paying the difference between what it charged and what Medicare allowed.

If a provider charges too little, the beneficiary must pay the difference.

What are some examples of charges that Medicare does not pay?

Medicare does not pay for some charges. For example, Medicare does not pay for:

Services that were not medically necessary

Services that were not legally authorized

Services that the beneficiary did not need

Services that were not correctly documented

Services that were not provided by an individual legally allowed to practice in the United States

Charges for services covered by another health insurance policy

Charges for services done with outdated equipment

Charges for services that are not up to the professional standards of health care providers

Charges for services that are not needed

Charges for services that are more costly than services that are needed

What are charges that Medicare pays?

Charges for services that are paid by Medicare include:

Initial charges for services covered by Medicare

Charges for services that Medicare has not decided are not medically necessary

Charges for services that are not covered by Medicare

Charges for services that are not considered medically necessary

Charges to Medicare beneficiaries for services that are not covered by Medicare

Services that are covered by Medicare but are too costly for the beneficiary to pay

Charges for services that are covered by Medicare, but the beneficiary chooses to decline Medicare coverage and pay for those services out-of-pocket

Charges for services that Medicare does

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