ORIGINAL MEDICARE

Part A Hospital Insurance - Most people don't pay a premium for Part A because they or a spouse already paid for it through their payroll taxes while working. Medicare Part A (Hospital Insurance) helps cover inpatient care in hospitals, including critical access hospitals, and skilled nursing facilities (not custodial or long-term care). It also helps cover hospice care and some home health care. Beneficiaries must meet certain conditions to get these benefits.

• Medicare Part A provides your inpatient hospital coverage as well as skilled nursing facility and hospice coverage.
• Medicare Part A costs most people $0/month if they worked at least 10 years in the U.S. and paid payroll taxes.
• Medicare Part A does cover a majority of your Part A costs, but you are responsible for the deductible and coinsurance.

Is Medicare Part A free?

Well, not exactly. Most beneficiaries will pay nothing for Medicare Part A at age 65, though because they have already pre-paid it. You see, we all pay taxes during our working years that are specifically for our future Medicare hospital coverage during retirement. These taxes go to offset the cost of Part A later on. As long as you have worked for 10 years in your lifetime in the United States, you will generally pay nothing at all for Part A. 

If you do not have 40 quarters, you can pay for Part A. Premiums in 2024 are $505 if you have less than 30 quarters or $278 for people with 30 – 39 quarters.

How to Enroll in Part A:  Are you receiving Social Security benefits?  If yes, you are automatically enrolled, and you will receive your Medicare card before you turn 65!   If not, you will not be automatically enrolled and must actively sign up through the social security office.

Part B Medical Insurance - Most people pay a monthly premium for Part B. Medicare Part B (Medical Insurance) helps cover doctors' services and outpatient care. It also covers some other medical services that Part A doesn't cover, such as some of the services of physical and occupational therapists, and some home health care. Part B helps pay for these covered services and supplies when they are medically necessary.

• In general, Medicare Part B covers a wide range of medically necessary outpatient services.
• Most people pay the standard monthly premium for Part B, but you may pay more if your income level is above a certain amount.
• Part B covers 80% of Medicare-approved services, leaving you responsible for 20%.
  

How to Enroll in Part B:  People who are already taking Social Security income benefits at age 65 do not need to enroll. The Social Security office will automatically enroll you. Your card will arrive in the mail 1 – 2 months before your 65th birthday.

Everyone else needs to apply for Medicare Part B themselves at age 65. Applying for Medicare Part B can be done online, over the phone or in person at your local Social Security office. After you apply, it will take 2 – 3 weeks before your card will arrive, so you should plan to apply several weeks before when you will need the coverage.

As you can see, it’s easy to sign up for Part B. It’s important to enroll in Part B during your Initial Enrollment Period unless you have other creditable coverage. Otherwise, you would be subject to a penalty!

This information comes from www.cms.gov