There are several factors that weigh into the costs associated with Medicare, and they all depend on the level of coverage you choose to receive.
Original Medicare, which includes Part A coverage (hospital care, skilled nursing facility care, home health care, and hospice care) and Part B coverage (doctor visits, lab tests, screenings, medical equipment, ambulance transportation, and other outpatient services) requires payments in the form of monthly premiums, annual deductibles, copays, and coinsurance.
Premiums: A premium is the amount you pay for your health plan each month. If you or your spouse have paid Medicare taxes throughout your life, you likely won’t need to pay a premium for Part A. In 2022, the Medicare Part B monthly premium is $170.10. The average 2022 premium for Part D coverage will be $33 per month.
Deductibles: A deductible is the amount you pay before your plan starts to pay. The Part A deductible in 2022 is $1,556 per benefit period. (A “benefit period” begins when you enter a hospital or skilled nursing facility and ends after you have been out for 60 consecutive days.) In 2022, the Medicare Part B deductible is $233 per benefit period.
Coinsurance: Coinsurance is the percentage of costs of a covered health care service you pay after meeting your deductible. For Part A, the coinsurance is $0 for days 1 through 60 and increases after that. For Part B, you typically pay 20% of the Medicare-approved cost of most doctor services, medical equipment, and outpatient therapy.
If you need more information on what the different Medicare parts cover or would like a refresher on the ins and outs of Medicare, call Advise at (833) 923-1869 (TTY: 711), 8 a.m. - 7 p.m. EST, M-F to request our free guidebook, Unlock Your Medicare.