Expect some small
boosts to what you paid for your healthcare coverage last year.
Dan
Caplinger (TMFGalagan)
Jan 3,
2019 at 4:13PM
Medicare is one of the most important
programs available to older Americans, with tens of millions of people getting
essential healthcare coverage through the federal government. However, Medicare
isn't free, and the costs involved are often surprising to those who aren't
familiar with the program.
Medicare
participants pay a variety of charges, including co-payments, coinsurance
percentages, and monthly premiums. Those costs tend to rise over time, and 2019
is no exception. Below, we'll go through all the different parts of Medicare
and what you can expect to pay for them in the coming year.
What
you'll pay for Part A hospital coverage
One of
the most important parts of Medicare often comes with no monthly premium for
participants. Hospital insurance coverage, also known as Medicare Part A, is free to those who had 40
quarters of qualifying employment for which they paid Medicare payroll taxes
during their careers or are married to a spouse who did so. Those who don't
qualify have to make premium payments. Those who have 30 to 39 quarters of
qualifying work will pay $240 per month, up $8 from last year. If you have less
than 30 quarters, then the monthly charge jumps to $437, up $15 from 2018.
If you
end up using your Medicare Part A coverage, then you'll also have to pay
deductibles and coinsurance payments for various services. You can see all the
options in the table below:
Medicare Charge
|
2019 Cost (Change From 2018)
|
Hospital deductible
|
$1,364 (up $24)
|
Coinsurance for days 61-90 of hospital stay
|
$341 (up $6)
|
Coinsurance for days 91 and beyond of hospital stay using
lifetime reserve days
|
$682 (up $12)
|
Coinsurance for skilled nursing facility stays
|
$170.50 (up $3)
|
DATA SOURCE: MEDICARE.GOV.
What
you'll pay for Part B medical coverage
In
contrast to Part A, everyone pays a monthly premium for medical coverage
under Medicare Part B, which covers doctor visits
and most outpatient procedures and services. The standard premium is set to
rise to $135.50 per month in 2019, up $1.50 per month from 2018. A small number
of participants will pay less than this if the increases in their Social
Security benefits in recent years have been insufficient to keep up with the
rising cost of Medicare premiums. However, Medicare estimates that only about 1
in 30 people on Medicare will pay premiums less than the $135.50 amount.
Higher
monthly premiums apply to those who are considered to be high-income
individuals. The table below shows you how much extra you'll pay every month,
depending on your level of income.
Income Level for Individual Taxpayers*
|
Income Level for Joint Filers
|
Added Monthly Charge for Part B Premium
|
$85,000 to $107,000
|
$170,000 to $214,000
|
$54.10
|
$107,000 to $133,500
|
$214,000 to $267,000
|
$135.40
|
$133,500 to $160,000
|
$267,000 to $320,000
|
$216.70
|
$160,000 to $500,000
|
$320,000 to $750,000
|
$297.90
|
More than $500,000
|
More than $750,000
|
$325
|
SOURCE: MEDICARE.GOV. *EXCLUDES MARRIED
PERSONS FILING SEPARATELY IF THEY LIVED TOGETHER AT ANY TIME DURING THE YEAR.
Those who
are married and file separate returns have just two ranges to consider: Those
making $85,000 to $415,000 pay the $297.90 surcharge, while those making more
than $415,000 pay $325 extra.
Finally,
Part B participants have to pay a deductible. Medicare makes you pay the first
$185 in medical care charges, up $2 from 2018 levels.
What
you'll pay for Medicare Part D prescription drug coverage and Medicare
Advantage
Parts A
and B constitute traditional Medicare coverage, but there are other options
that some participants use. Prescription drug plans are available under
Medicare Part D, with a wide variety of policies available. Others use Medicare Advantage as a substitute for
traditional Medicare.
Private
insurers offer both Medicare Advantage and Part D plans, and so costs can vary
greatly depending on the level of coverage and the insurance company. Although
costs generally go up over time, you can sometimes find cheaper plan alternatives. However, it's
important to look not only at monthly premium costs but also the out-of-pocket
expenses you'll pay for the prescription drugs or other medical care that
you'll need.
Every
little bit can be a challenge
Many
Medicare participants are retired and can't afford to pay any more than they
have to for their healthcare coverage. Although 2019's increases to Medicare
costs are relatively modest, they'll still put some strain on the finances of
millions of older Americans in the coming year.
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