Medicare Hospital Insurance (Part A) covers hospital care. It is free for anyone who has paid Social Security and Medicare payroll taxes for 10 years (40 quarters of work) and for the spouse of a person who has paid the taxes.
In 2012, people with 30-39 quarters of Medicare-covered employment are required to pay a premium of $248 per month. For those people who are not eligible for Part A and have fewer than 30 quarters worked, the premium is $451 per month in 2012.
There are various co-payments and deductibles. The first day in the hospital will cost a beneficiary $1,156 in 2012. The next 59 days are free. There is a co-payment of $289 per day for days 61-90. For days 91-150, the co-payment is $578 per day.
After a hospital stay of three days or more, some patients may be transferred to a skilled nursing facility for rehabilitation. The first 20 days are free. For days 21-100, the co-payment is $144.50 per day.
Medicare Medical Insurance (Part B) covers doctor bills. There is a premium of $99.90 per month for the majority of the 47 million beneficiaries, individuals with income up to $85,000 per year, and married couples with incomes up to $170,000.
The standard Part B premium for 2012 is $99.90. For 2012, most people pay a Medicare Medical Insurance (Part B) premium of $99.90 per month if they had the premium deducted from their Social Security checks. The premium is higher for individuals with incomes above $85,000 per year and for married couples with incomes above $170,000 per year.
Beneficiaries filing an individual tax return pay a monthly premium of $139.90 if their income is $85,001-$107,000; $199.80 if their income is 107,001-160,000; $259.70 if their income is $160,001-$214,000; $319.70 if their income is above $214,000.
For beneficiaries filing jointly, the 2012 Part B monthly premium is $139.90 if their income is $170,001-$214,000; $199.80 if their income is $214,001-$320,000; $259.70 if their income is $320,001-$428,000; and $319.70 if their income is above $428,000.
Beneficiaries who are married but file separate tax returns pay $259.70 if their income is $85,001-$129,000; and $319.70 if their income is above $129.
How Much Does Medicare Hospital Insurance (Part A) Cost for Beneficiaries?
How Much Does Medicare Medical Insurance (Part B) Cost for Beneficiaries?
How Are Medicare Premiums Calculated?
Does Medicare Cover All of Beneficiaries’ Medical Expenses After Age 65?