Part A Medicare Costs
Part A hospital insurance has $0 monthly premium cost in most cases, but also includes a deductible to meet before coverage begins ($1,316 in 2018). This deductible is NOT annual. It is per benefit period, which means if you have multiple hospitalizations during a year, you might have to pay more than one deductible.
After your deductible, for inpatient hospitalizations you are responsible for a:
- $0 coinsurance payment per day for days 1-60
- $329 per day for days 61-90
- $658 per day for days 91 and beyond
Every day beyond 91 is considered a lifetime reserve day. You get 60 of these
Part B Medicare Costs
For most people, Part B medical insurance has a standard monthly premium cost of $134. The premium may be less ($109) if you have the monthly payment taken out of your Social Security check. However, it could be higher based on income as well.
You’re responsible for a Part B deductible ($183 in 2018), and after that deductible, for 20% of Medicare-approved amount for most doctor services, outpatient therapy and durable medical equipment.
Part C Medicare Costs
Medicare Advantage (Part C) plans vary in costs. These plans wrap up coverage equal to Parts A and B, often include Part D prescription drug coverage, and may include other features, such as dental or vision benefits. Check specific plans available in your county for details.
Part D Medicare Costs
Prescription Drug (Part D) plans vary in costs. Check specific plans for details.
However, if you have several prescription drugs, one cost issue to keep in mind with Part D is what is called the donut hole. This is a coverage gap between your Part D drug coverage threshold (the initial coverage limit Part D will pay for your drugs) and your Part D plan out-of-pocket spending limit (when catastrophic coverage kicks in and reduces your drug costs to a small copay).
For example, in 2018 the coverage threshold is $3,750 and the out-of-pocket spending limit is $5,000. This creates a “donut hole” of $1,250 where Medicare recipients are responsible for the costs of their drugs.