Jan 21st, 2012 | By | Category: Social Security & Medicare

Medicare Costs Reviewed

It is a good practice to review what you pay for Medicare annually.  This article will lead you through what to look at in your individual circumstances.

The Medicare benefits are provided in four parts:

  • Part A – Hospital Care
  • Part B – Medical Care (physicians, testing and imaging, screenings, etc)
  • Part C – Medicare Advantage – the private health insurance programs people can opt for instead of Original Medicare; Medicare Advantage programs provide coverage for hospitals, medical and prescription drugs.  A Medicare Advantage plan replaces Original Medicare.
  • Part D – Prescription Drug Coverage – this may be included in some supplemental insurance plans, or it can be a stand-alone plan.

Regarding Part A, hospital deductibles are paid when hospital admission is required.  There is no other deductible for Part A except for those who enrolled late; if you fall into that category, there are late enrollment penalties, and a monthly premium for late enrollees.

Part B Deductible is Primary Cost for Most Beneficiaries

The majority of seniors on Medicare pay a deductible for Part B (non-hospital medical care), which is $99.90 for 2012. It is deducted from social security monthly checks for most seniors; some prefer to make a monthly or quarterly payment.

In addition, for those who enrolled late for Part B, there are late enrollment penalties.

The cost of Parts C and D vary by plan and by insurance company.  Some plans have no deductible, and others do depending upon benefits offered.  There is a potpourri of options available, and seniors are encouraged to review the options every year to be sure you are enrolled in the plan that best suits your needs.

Here are some links to sites on Medicare.gov that you may find helpful:

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