It’s a common misconception that medicare is free for everyone in the country. This couldn’t be further from the truth, and this oversight can often cause serious financial problems for people who are not prepared. Read on to learn about how much does medicare cost!
Medicare is a government run program that is designed to provide or supplement heath care services for those people over the age of 65 and:
• Certain people under 65 with disabilities
• People of any age with End-Stage Renal Disease (ESRD) (permanent kidney
failure requiring dialysis or a kidney transplant)
Original Medicare consists of Part A and Part B. You can supplement your Original Medicare a few different ways. For more information on these different parts of medicare, refer to our previous article that explains them in more detail.
One of the biggest questions we receive is about how much Medicare costs. Much like other government programs, the answer is “it depends”. Read on to learn more about typical costs associated with Medicare!
As we said, there is no one answer to the question “How much does Medicare cost?”. Let’s first start with the premium. If you or your spouse worked for over 10 years and paid into the social security system, there is no premium to pay, sometimes referred to as “Premium-free Part A.” If you did not pay into the system, there are two premium levels:
7.5 to 10 Years (30-39 quarters): $252 a Month
Fewer than 7.5 Years (Less than 30 quarters): $458 a Month
Please note, these numbers are based on 2020 costs and are likely to change in the future.
Retirement should be a time to relax, not worry about medical costs.
Medicare Part A does not have an annual deductible. Instead there is a deductble that applies to each hospital benefit period. A benefit period starts when you enter a hospital or skilled nursing facility. It ends when you have been out of the hospital or facility for a minimum of 60 consecutive days. The current 2020 Part A deductible is $1408 (this often changes on an annual basis).
The Medicare Part A deductible applies once you are admitted into the hospital. This benefit period is for days 1-60.
This differs from a skilled nursing facility where a copay will start after the first 20 days of being in the facility.
You will be responsible for the deductible $1,408 for a hospital stay. This is not an annual deductible, you pay this deductible once each benefit period. Your payment may change the longer you stay in the hospital. There is no cap on the amount of times you may have to pay this deductible, you could be responsible for this deductible up to 6 times in one year.
There is no deductible for a skilled nursing facility stay.
It is also important to remember Medicare will not cover purely custodial stays – meaning you cannot cloth, bathe, or feed yourself.
This is how much you can expect to pay based on your length of stay.
0-20 Days: $0
21-100 Days: $176 a Day
Over 100 Days:All Costs
Note: During the COVID-19 pandemic, some people may be able to get renewed SNF coverage without first having to start a new benefit period.
For more information: https://www.medicare.gov/coverage/skilled-nursing-facility-snf-care
In order to have Medicare cover your home healthcare costs, you need to meet specific conditions. For Original Medicare, there is a $0 cost for qualified services and 20% for Medicare-approved amounts for durable medical equipment (dme).
Medicare covers home healthcare services when a doctor certifies that:
Medicare will only cover home care services when your doctor:
Note: During the COVID-19 pandemic, nurse practitioners, clinical nurse specialists, and physician assistants can now provide home health services, without the certification of a physician.
Medicare only covers your hospice care if the hospice provider is Medicare-approved. To find out if a hospice provider is Medicare-approved, ask one of these:
Once your hospice benefit starts, Original Medicare will cover everything you need related to your terminal illness.