Medicare has changed every year since 1967 and 2012 is no exception. Medicare premiums, deductibles, and co-payments for hospitalization (Part A) and medical care (Part B) are changing effective January 1st, 2012. The following information will explain what is changing for Medicare premiums and deductibles and what that means for you.
Medicare Part A in 2012
What is changing in 2012?
2012 Medicare Part A Premium: Your Medicare Part A premium will increase by $1 per month.
2012 Medicare Part A Deductible: The Medicare Part A deductible will increase going from $1,132 per benefit period to $1,156 (*1184) per benefit period in 2012.
2012 Medicare Part A Co-payments: The cost of spending 61-90 days in the hospital will be $289 (*296) per day, which is a $6 increase. If you are in the hospital 91-150 days, the per day Medicare Part A co-payment in 2012 is $578 (*$592) a $12 increase from 2011. Of course after 150 days, Medicare no longer helps pay for your hospital expenses.
2012 Medicare Part A Skilled Nursing: After 20 days of being admitted to a skilled nursing facility, the per day co-payment for a Medicare beneficiary is $144.50 (*$148) in 2012. This amount is $3 increase from 2011.
How do the 2012 changes in Medicare affect you?
2012 Medicare Part A Premium: This $1 increase in the 2012 Medicare Part A premium will not affect many beneficiaries because 99% of beneficiaries are exempt from paying the Medicare Part A premium. This is because most Americans pay into this amount while working.
2012 Medicare Part A Deductible: The Medicare Part A deductible increase will be paid by any Medicare beneficiary requiring hospitalization, unless they have a Medicare Supplement Insurance Plan that covers those charges. The Medicare Part A deductible is fully covered under Medigap Plans.
2012 Medicare Part A Co-payments: This will affect those with Medicare Part A who must undergo an extended stay in the hospital. Part A co-payments are fully covered under Medigap Plans A, B, C, D, F, G, M, and N so those with this type of plan are not effected by the hike.
2012 Medicare Part A Skilled Nursing: Medicare will cover up to 20 days in a skilled nursing facility. See the definition of skilled nursing here. Medigap plans C, D, F, G, M, and N cover skilled nursing so if you have purchase one of these policies the 2012 skilled nursing copayment changes will not affect you.
Medicare Part B in 2012
What is changing in 2012?
2012 Medicare Part B Premium: The Medicare Part B premium will decrease by $15.50. The 2012 your Medicare Part B premium is $99.90 (*104.90).
2012 Medicare Part B Deductible: The Medicare Part B 2012 deductible is $140 (*147). This is a $22 decrease since last year.
How do the 2012 changes in Medicare affect you?
2012 Medicare Part B Premium: Although the actual 2012 cost for Medicare Part B premium seems lower, to most beneficiaries the $99.90 (*104.90) premium is an increase of $3.50. An increase in payments in social security benefit checks in 2012 is meant to offset this increase. Individuals qualify for Medicare Part A premium free through paying into Medicare and social security while part of the workforce. These individuals are also enrolled in Medicare Part B automatically and must pay this monthly Part B premium amount, unless they want to opt out of Medicare Part B completely as it is a voluntary program.
2012 Medicare Part B Deductible: Medicare beneficiaries incur the Medicare Part B deductible for doctor visits, lab tests, surgeon’s fees, ambulance rides, speech therapy, etc. Medigap Plan F and Medigap Plan C policy holders do not have to pay this deductible.
*2013 Rates Updated
You may notice that with a Medicare Supplement Insurance Plan, you don’t have to pay many of the 2012 premiums and deductibles mentioned. To learn more about the Medigap Plans option, enter you zip code below to get a free Medigap quote from one of our licensed Medicare Supplement Insurance agents.