Original Medicare is made of Medicare Parts A and B. These operate the same as they have throughout the years, but the prices are different. Medicare Part A is what you get when you’re in the hospital as an inpatient, and Part B is the care you get outside that setting. We will look at how you can get them, the differences in how they work, and what we can do.
How You Can Get Original Medicare
There are a couple of ways you can get an Original Medicare plan. If you’re on Social Security, chances are you will be automatically enrolled and you will get your Medicare card mailed to you.
If you’re turning 65 but not on Social Security, you’ll need to sign up. You’ve got between the three months before the month of your 65th birthday, to the three months after it. This is the Initial Enrollment Period.
How Does Medicare Part A Work?
Part A has a deductible, premium, and copay. Your Part A payments are based on your time in the hospital.
Premiums:
- If you lived in the U.S. and paid 40 tax credits or more, and are automatically enrolled, you get Part A premium-free
- $259 per month if you earned between 30 to 39 tax credits
- $471 if you earned fewer than 30 tax credits
Deductibles and copays:
- The 2021 Part A deductible is $1484 for each benefit period
- If you are a hospital inpatient, then for the first 60 days, you will pay $0 for coinsurance.
- Days 61-90 of the benefit period requires you to pay a $371 coinsurance for each day
- For days 91-150, you use lifetime reserve days, paying $742 per day for coinsurance
- For days 151 and beyond, you cover all costs
How Does Medicare Part B Work?
Medicare Part B covers things like doctor visits, exams, x-rays, and durable medical equipment.
Premiums:
- Premium is $148.60 a month, but can be more if you have a higher income
- You can arrange a payment plan to make automatic payments every month from your bank account
- If you’re on Social Security, the premium is deducted from your Social Security check
Deductibles and coinsurance:
- $203 deductible in 2021
- You pay 20% of the Medicare-approved amount for coinsurance
Excess charges:
- Difference between what the doctor billed and the Medicare-approved amount (plus the 20% out-of-pocket you paid of that amount)
- If your doctor accepts Medicare assignment, the excess charges are written off
- If your doctor doesn’t accept, you could pay up to 15% above the Medicare-approved amount
What We Can Do
When you visit our office or call us, we can help you enroll for Original Medicare and find ways to make these out-of-pocket costs lower. When you’re turning 65 and need direction, turn toward Turning 65 Solutions. Call us today at (830) 217-6711 or email us at ron@t65s.com.