Though Medicare benefits are very helpful for millions of older Americans, neither Medicare Part A nor Part B pays for all of someone's health care costs. Medicare coverage also includes out-of-pocket costs, and all beneficiaries should be aware of what they're required to pay for their own health care.
Out-of-pocket costs include things like monthly premiums, deductibles, and co-pays.
Most people with Part A don't pay a monthly premium for their Medicare benefits because they or their spouse have had 40 or more quarters in which they paid the right kind of employee taxes (Federal Insurance Contribution Act taxes).
If, however, you or your spouse have not had 40 or more quarters of paying such taxes, Medicare coverage can be purchased for either $233 dollars per month (for those with 30 to 39 quarters of taxes paid), or $423 dollars per month (for those with less than 30 quarters of taxes paid).
In contrast, anyone with Medicare Part B will pay an insurance premium for Medicare coverage. Those premiums are based on income, ranging from around $97 dollars to start, and going up to $239 dollars for individuals earning more than $200,000 dollars per year or couples earning more than $410,000 per year.
Medicare benefits for Part B premiums are not deducted automatically from monthly Social Security checks, so it's important to pay those bills and make sure that your coverage is up to date.
Deductibles also vary depending on each Medicare plan. Medicare part A deductibles, for example include about $1,000 for a hospital stay of 1 to 60 days, and start at $256 per day after that (they can also go up from there). Nursing facility costs are lower, costing around $128 per day.
Medicare benefits for Part B include a yearly deductible of $135, and payment of 20% of Medicare approved services.
Co-pays for medications and doctors visits vary from plan to plan, so beneficiaries need to know exactly what kind of Medicare coverage they have, and what comes with it, in case of an emergency, accident, or sudden illness.
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