Medicare Part A
Part A (Hospital Insurance) helps pay for inpatient care in a hospital or a limited amount of time in a skilled nursing facility following a hospital stay. It also may pay for home health care or hospice care.
Premium-Free Part A
Most people are able to qualify for “premium-free Part A Medicare” (Hospital Insurance.) This means that there is no monthly premium required if you or your spouse paid Medicare taxes for a certain amount of time while working.
You may be eligible for premium-free Part A once you are 65 if:
- You receive retirement benefits (or are eligible to receive retirement benefits) from Social Security or the Railroad Retirement Board
- You or your spouse had Medicare-covered government employment
Part A Premiums
You can choose to buy Part A benefits if you do not qualify for premium-free Part A. In 2022, people will pay either $274 or $499/month. The amount you pay will depend on how long you or your spouse paid Medicare taxes while working. You can still purchase Part B benefits if you choose NOT to buy Part A.
If you choose to purchase Part A, you typically must also purchase Part B (Medical Insurance) and pay the month premiums for both Part A and Part B insurance.
Medicare Part B
This pays for outpatient care, home health care, services provided by a health care provider, medical equipment, and preventative services.
Part B Premiums
Part B requires a premium payment each month. The standard Part B premium amount in 2021 is $170.10. This is the amount that most people pay. However, if your modified adjusted gross income is above a certain amount, you may pay an Income Related Monthly Adjustment Amount (IRMAA.) This adjustment will be made based on your IRS tax return from 2 years ago.
Part B Deductible & Coinsurance
You will pay $233 dollars for your Part B deductible. After you meet your deductible, you will typically pay 20% of the Medicare-approved amount for:
-Durable Medical Equipment
The Cost of Original Medicare
Original Medicare is funded by the government.
Most people 65 and older are eligible for free Medicare Part A- medical hospital insurance if they have worked and paid Medicare taxes long enough. Part B insurance requires a monthly premium. Higher incomes may require a higher monthly Part B premium.
Generally, you can receive your healthcare from any healthcare provider, hospital, or facility that is enrolled in Medicare and accepting new Medicare patients.
In Original Medicare, a primary care doctor is not required.
Most prescriptions aren’t covered in Original Medicare, aside from a few exemptions. Drug coverage can be added through Medicare drug plan (part D).