Medicare Explained

Medicare Parts A & B - Original Medicare

Medicare Part A 

Medicare part A provides hospital coverage, skilled nursing facility care, hospice care and home health care.

Most people do not pay a monthly premium for Medicare Part A; you or your spouse paid for this through payroll taxes while working. But with Medicare Part A you are responsible for paying a deductible and coinsurance when receiving inpatient care.


Medicare Part B 

Medicare part B provides outpatient services like visits to your primary care doctor or specialists, outpatient surgery, ambulance, outpatient medical health, durable medical equipment, outpatient physical therapy and outpatient lab work. Medicare Part B also has a deductible and coinsurance including 20% of the Medicare approved amount for services after you meet the deductible.

There is a monthly premium for Medicare Part B, which is determined by your modified adjusted gross income reported on your tax return from two years prior. Depending on your income, you may pay more or less per month for your Medicare Part B coverage.

2020 standard Part B premiums by income:

2018 yearly income - individual tax return:

• $87,000 or less - you pay $144.60 in 2020

• Above $87,000 up to $109,000 - you pay $202.40 in 2020

• Above $109,000 up to $136,000 - you pay $289.20 in 2020

• Above $136,000 up to $163,000 - you pay $376.00 in 2020

• Above $163,000 up to $500,000 - you pay $462.70 in 2020

• Above $500,000 - you pay $491.60 in 2020

2018 yearly income - joint tax return:

• $174,000 or less - you pay $144.60 in 2020

• Above $174,000 up to $218,000 - you pay $202.40 in 2020

• Above $218,000 up to $272,000 - you pay $289.20 in 2020

• Above $272,000 up to $326,000 - you pay $376.00 in 2020

• Above $326,000 up to $750,000 - you pay $462.70 in 2020

• Above $750,000 - you pay $491.60 in 2020

2018 yearly income - married and separate tax return:

• $87,000 or less - you pay $144.60 in 2020

• Above $87,000 up to $413,000 - you pay $462.70 in 2020

• Above $413,000 - you pay $491.60 in 2020

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