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Medicare Costs 2018

By February 15, 2018No Comments

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
  • Co-Pays:
    • 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.

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