In 2018 the Medicare costs are as follows:
Part A: Hospital Insurance.
- Premium: $422.00 a month.
- Many people qualify for a premium free benefit of Part A as they have paid taxes for it while working.
- Deductible: $1,340.
- This is for each benefit period that occurs.
- Example – Person A is admitted for a medical procedure as an inpatient, there is a deductible for this occurrence. If Person A is again admitted for a different occurrence, then there will be another deductible that must be paid.
- Hospital Stays:
- Days 1-60: $0.00. For each occurrence
- Days 61-90: $355.00 per day.
- Days 91 and beyond: $670.00 per day, up to 60 days.
- Skilled Nursing
- Days 1 – 20: $0.00.
- Days 21 – 100: $167.50 per day
- Days 101 and beyond: All costs
Note: With certain Supplemental Plans (Medigap) the ability to cover all costs of Part A can be achieved as well as extending the number of Hospital Stays to 365 days per year.
Part B: Medical Insurance
- Premium: $134 a month
- Deductible: $183.00 per year
- Excess charge: 15%.
- This charge is for healthcare providers who do not participate in the Medicare program. If they do tend to a Medicare beneficiary, they can charge up to 15 percent of the Medicare cost.
Note: With certain Supplemental Plans (Medigap) the ability to cover the deductible and the excess charge of Part B can be achieved.
Income Related Monthly Adjustment Amount (IRMAA).
IRMAA applies to people with higher incomes who are enrolled in Part B and/or covered under a Medicare Part D Prescription Drug Plan. For those who enter Medicare’s IRMAA there will be a surcharge on top of their monthly Medicare Part B and Part D premiums.
2018 IRMAA Brackets
|Individual MAGI||Couples MAGI||Part B||Part D|
|< $85k||< $170k||Premium||Premium (varies)|
|$85k – $107k||$170k – $214k||$187.50||Premium + $13.30|
|$107k – $133k||$214k – $266k||$267.90||Premium + $34.20|
|$133k – $160k||$266k – $320k||$348.30||Premium + $55.20|
|$160k||$320k||$428.60||Premium + $76.20|
Note: Social Security benefits will automatically pay these IRMAA surcharges. A Medicare beneficiary will receive a bill if they are receiving Social Security.
Part D: Prescription Drug Coverage.
- Premiums: $52.52 per month.
- This premium is based on a national average and is combination of plans that also include a deductible.
- The price of the premiums varies by residency, medications within the plan and by the insurance company that administers the plan.
- If part of a Medicare Advantage Plan the monthly premium paid for that plan may include the amount for prescription drug coverage.
- Deductible: $389.00 a year
- When enrolling into a Part D plan there is always an option to select a plan that comes with a deductible or not.
- Within most states, having a Part D plan with a deductible equates in a lower monthly
- Set by the insurance company that administers the plan.
- Co-pays are typically a dollar amount between $1.00 to $50.00 for each prescription filled depending on the type of medication.
- Co-insurance: 25% to 50%
- Depending on the medication a plan may charge up to 25% to 50% per prescription.
- All Co-insurance is set by the insurance company that administers the plan.
Supplemental Coverage (Medigap):
Supplemental Coverage covers the gaps within Medicare Parts A and Part B. Plans can extend coverage as well as cover all deductibles and co-pays that are included in Parts A and B.
- Private insurers administer the plans and they are regulated by the Centers of Medicare Services (CMS).
- Plans are broken into different types of plans (A – N) and can have varying types of coverage within the plan.
- Plan F is considered to be the most robust plan, but a healthcare professional can help determine which plan is best suited.
Premium: $208.18 a month on a national average
Part C: Medicare Advantage Plans.
Coverage through a private health insurer who, by law, must provide the exact same coverage that Original Medicare (Parts A & B) provides, but still can offer a wide variety of other types of coverage as well.
Due to these plans being able to include specific coverage a national average has not been determined.