At the last count, the average spending per person for the elderly US population was three times higher than spending per working-age person, and five times as much as childhood healthcare expenses.
Fortunately, in the USA, all citizens over the age of 65 can enroll in Medicare insurance to help them save on some of these exorbitant costs.
What’s more, the various types of Medicare offer different solutions to help ensure you’re covered for the things you need. So, you’ll have some decisions to make when it’s your turn to sign up.
For starters, find out more about Medicare Part A vs Part B and whether you need them both.
Medicare Part A (Hospital Insurance)
Together, Medicare Part A and B form part of Original Medicare coverage. Medicare Part C includes a wide range of additional coverage offered by private health insurers.
Here’s what Part A coverage pays for medically necessary surgery, most in-hospital costs, and other inpatient medical costs, like:
- Home health services, including physical therapy, nursing care, and occupational therapy
- Hospice treatment
- Inpatient long-term care and rehab
- Nursing home care, other than custodial care
- Skilled nursing facility care
If you paid taxes while working for ten years or more, you won’t pay any premiums for Part A. Those who’ve worked fewer than 30 quarters pay $471 monthly. If you’ve paid taxes for any period in between these two figures, you’ll pay $259 per month.
Medicare Part B (Medical Insurance)
Medicare Part B covers the most common out-of-hospital and outpatient expenses. These include:
- Ambulance transportation
- Medical equipment
- Diagnostic screenings
- Doctor visits
- Lab tests
Part B involves more costs than Part A. However, unless you have health insurance that covers the above expenses, it’s best to sign up for this part of Medicare when you enroll.
If you don’t sign up straight away, you may pay higher premiums going forward.
The federal government determines the monthly premiums for Part B. The current cost is $148.50, or more if you earn more than $88,000 per annum.
Medicare Part A vs Part B OOP Costs
This Original Medicare coverage includes several necessary medical necessities. Yet, you’ll still need to pay some out-of-pocket healthcare costs, including:
Part A OOP Expenses
With Part A, there is a $1,484 deductible per benefit period. Coinsurance increases from $0 for the first 60 days, to $742 coinsurance after day 90, per each “lifetime reserve day”. After that, you pay all costs.
Lifetime reserve days are 60 days of extra coverage per lifetime. If you stay in hospital for more than 90 days during a benefit period, you can get use up as many of these extra days as needed.
Lifetime reserve days don’t renew.
Part B OOP Expenses
The Part B deductible is $203 per benefit period. Once you’ve met your deductible, you’ll pay 20% of the Medicare-approved costs for most doctor’s services.
Bearing these limitations in mind, it’s worth considering a Medicare supplement plan when signing up for Medicare. These plans can help cover some or all the out-of-pocket costs for your medical expenses.
Safeguarding Your Future Health
Armed with this knowledge of the benefits of Medicare Part A vs Part B, you can consider your healthcare options with renewed confidence.
It’s vital to remember your current as well as future costs while making this important decision. One way to ensure you enjoy ongoing good health is by taking good care of yourself.
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