Benefits Highlights

Medicare Premium Amounts for 2005

Most types of health insurance have a deductible. In most cases, that deductible is met for the year when you have used a certain amount of health care, and billed the insurance for those services. With Medicare Part A, however, the deductible is not paid by year. Instead, it is paid once for each “benefit period”.

A benefit period begins when an individual is admitted to the hospital. It ends only after the person has been discharged from the hospital or skilled nursing facility for more than 60 days. It is possible, therefore to have more than one benefit period in a year. This is an important point to Keep that in mind when explaining Medicare provisions to folks.

The following information on Medicare is from the Medicare website. This is a website that I suggest you make a favorite.

Medicare Premium Amounts for 2005

Part A: (Hospital Insurance) Premium:

• Most people do not pay a monthly Part A premium because they or a spouse has 40 or more quarters of Medicare covered employment.
  
• $375.00 per month (Note: This premium is paid only by individuals who are not otherwise eligible for premium-free hospital insurance and have less than 30 quarters of Medicare covered employment).
  
• The Part A premium is $206.00 for those individuals having 30-39 quarters of Medicare covered employment.
  

Part B: (Medical Insurance) Premium:

• $78.20 per month.

Original Medicare Plan Deductible and Coinsurance Amounts for 2005

Part A: (Hospital Insurance):

Deductible:
$912.00 (Per Benefit Period)

Coinsurance:
$228.00 a day for the 61st - 90th day each benefit period.
$456.00 a day for the 91st - 150th day for each lifetime reserve day (total of 60 lifetime reserve days - non-renewable).

Skilled Nursing Facility Coinsurance:
up to $114.00 a day for the 21st - 100th day each benefit period.

Part B: (Medical Insurance)

Deductible:
$110.00 per year. (Note: You pay 20% of the Medicare approved amount for services after you meet the $100.00 deductible.)

Terri Uttermohlen