Medicare Part A Costs include the premium and the deductible. Original Medicare is made up of the two parts: Part A (hospitals) & Part B (doctors). Part A is what you’ve been paying your taxes for all these years. For Medicare Part A costs, if you have worked 10 years (40 quarters), you probably will get Part A premium- free. If you have under 40 quarters see the chart below to determine the amounts that you’ll pay (as of 2017).
Part A deductible for hospitals is $1316.
Day 1-60 in the hospital no cost
Day 61-90 you’re going to pay $329 coinsurance every day
Day 91 and above you’re going to pay $658 per day
So those are the costs for Part A deductible.
Medicare Part A Costs is the biggest reason that people will either get a Medicare Supplement. With the Medicare Supplement you’re going to find that costs will be taken care of. Have a look at the screen: Out of the 10 Medicare Supplements, the most popular as of this moment tend to be the Plan F and the Plan G so you’re going to find that your costs are going to taken care of.
Medicare Supplement has options of either zero Deductible or $183 deductible (Plan F & Plan G). See here on the screen everything specifically that’s paid for and with the supplement with these two specifically you have your option of either a zero deductible or $183 annual deductible. Right now Plan F is available. In 2020 it won’t be available for new folks turning 65. But for right now it is available and that’s the zero deductible plan. The only difference between Plan F and Plan G is that on the Plan G you take care of that annual deductible which as the time of this video is a $183 annually. That’s the only difference.
The reason I’m showing you Plan F and Plan G is they tend to be the most popular because they cover the most. A Medicare Supplement will give you a lot of freedom. It goes hand in hand with the original Medicare and it picks up the costs.
Medicare Approved & Medically Necessary. As long as your procedure is Medicare approved and your doctor says you need it there’s nobody behind the scenes saying “Yes you can have this and no you can’t have that”. They follow right behind original Medicare and it almost becomes an automatic billing.
Medicare Supplement process becomes automatic. First, original Medicare pays for their portion. That’s Part A and Part B & then they send the rest of the bill on to the Insurance company. You will never see a bill. On the Plan G you just meet your doctor deductible of $183 annually, on the Plan F there is no deductible.
Plan F and G do not have copays. You don’t have any maximum out of pocket like in Medicare Advantage where you have a $6700 maximum out-of-pocket per year. There’s nothing like that on the Supplement. You pay your monthly premium and then you choose do you want a zero deductible or a $183 deductible. Those are the 2 most popular choices.
You can travel with the Supplement & be covered. You are open to the Mayo Clinic or MD Anderson if you ever need those specialty hospitals. There’s nobody behind the scenes like I mentioned to say yes or no. You do not have to have procedures pre-certified, like a Medicare Advantage. If Medicare pays their portion of it then the supplement company HAS to follow right behind them to pick up the difference.
Nobody can cancel your Medicare Supplement like they can with Medicare Advantage. That is what we call guaranteed renewable. You just have to make sure that your premiums are paid. The only way any company can cancel you is if you don’t pay the bill. So that’s a big difference between a Medicare Advantage. Check out the whole article on What is the Difference between Medicare Advantage and Medicare Supplement. So we have a more in-depth video about the Medicare Supplement this is just to give you a little bit of overview.
Thank you for checking out What are Part A Costs in Medicare. If you have any questions at all please feel free to give us a call. We’re happy to help with anything Medicare. Of course our services are free. Our number is (888) 506-7510. But if you are like so many folks that have questions about Medicare have a look at our 6-Part Medicare mini course. You’ll find that at www.GetMedicareSavings.com.