Medicare medical insurance is one of the four parts of what’s know as Traditional Medicare. Medicare includes Part A hospital insurance, Part B medical insurance, Part C Medicare Advantage and Part D prescription drug plans. When you combine Part A and Part B, it’s known as Original Medicare. Below we’ll discuss what Part B Medicare medical insurance is.
What is Medicare Medical Insurance?
As stated above, Medicare medical insurance is Part B of Original Medicare. You can find a full description of all four parts of Medicare explained here. Medicare medical insurance covers services and supplies that are found to be needed for a medical treatment. This includes:
- Preventive services
- Outpatient care
- Durable medical equipment
- Ambulance services
- Home health care
- Rehabilitative services
How Much Does Medicare Medical Insurance Part B Premium Cost?
The cost of the Medicare Part B premium depends on the insured individual’s adjusted gross income (AGI) from two years ago. This is the most recent information provided by the Social Security Administration. The income threshold for both individual and joint tax returns is relatively high, so most people will pay a standard amount. The Medicare Part B deductible is a flat amount that is set and may change year to year. After the deductible, the co-insurance cost needs to be paid, this is typically 20%.
Medicare recipients who enrolled before 2017 paid an average premium of $109, those who enrolled in 2017 paid an average monthly premium of $134. Below includes a chart that provides a breakdown of Medicare medical insurance Part B premiums for 2017 based on household income.
2017 Medicare Medical Insurance Part B Premiums by Household Income
|wdt_ID||If You Filled an Individual Tax Return||If You Fill a Joint Tax Return||Your Cost|
|1||$85,000 or less||$170,000 or less||$134|
|2||$85,001 - $107,000||$170,001 - $214,000||$187.50|
|3||$107,001 - $160,000||$214,001 - $320,000||$267.90|
|4||$160,001 - $214,000||$320,001 - $428,000||$348.30|
|5||Above $214,000||Above $428,000||$428.60|
How Much Does Medicare Medical Insurance Deductible and Coinsurance Costs
In 2017, the annual deducible for Medicare medical insurance is $183. The coinsurance includes the remaining 20% of your medical costs after Medicare pays the 80% their responsible for.
Medicare Medical Insurance Late Enrollment Penalty
Since Part B Medicare medical insurance comes with a monthly premium, you may not want to sign up once you become eligible, or during your initial enrollment period. If you choose to not enroll during your initial enrollment period, and are not eligible for a special enrollment period of any one of the other Medicare enrollment periods, you’re subject to a 10% increase in your monthly premium for each 12 month period that you didn’t enroll. You can find a detailed description of all the different types of Medicare enrollment periods here.
Eligibility for Medicare Medical Insurance
If you’re eligible for Medicare Part A premium free, then you’re eligible for Part B Medicare medical insurance. You’re also eligible for Part B if your 65 years or older and are a U.S. citizen. You’ll be automatically enrolled if your under 65 and on disability after receiving benefits for 24 months.
What if I Can’t Afford the Out Of Pocket Costs Associated with Part B Medicare Medical Insurance?
If you need help paying for the out of pocket costs your left responsible for, Medicare Supplements can help. These policies are also known as Medigap plans. They help Medicare recipients enrolled in Medicare medical insurance pay for the out of pocket costs such as coinsurance, copayments and deductibles. There are 10 letter plans to choose from, ranging from letters A thru N. Each plan includes a different level of benefits, that way everyone can find a plan that fits their personal health care needs and budget. You can use our online price comparison tool to see the rates side by side in your area today!
There are many facets to the Medicare system and going through it may seem overwhelming. MedicareFAQ is here to help! Our resources answer many questions you might have already. If you are qualifying for Medicare for the first time, have a spouse that is, or qualifying early due to a disability, let us help you understand all the ins and outs of Medicare. We’ll go through all of your options and find a plan that fits you!