Medicare Supplement Insurance - What Are the 2011 Deductibles, Coinsurance, and Co-Pays It Covers?
Medicare has finally released the numbers for the 2011 gaps in Medicare parts A & B. Understanding what these exposures are can help you quantify the value of purchasing a Medicare supplement and even provides some interesting insight and questions. Could there be a metaphorical "slight-of-hand" included from Medicare regarding inflation? If so, why? Read on to find out.
Let's go over the facts first. Here is a list of the exposures included with Medicare parts A & B in 2011.
Medicare Premiums for 2011:
Part A: (Hospital Insurance)Premium
Most beneficiaries will continue to pay the same $96.40 or $110.50 premium amount in 2011. Beneficiaries who currently have the Social Security Administration (SSA) withhold their Part B premium and have incomes of $85,000 or less (or $170,000 or less for joint filers) will not have an increase in their Part B premium in 2011. For additional details, see our FAQ titled: Will my Medicare Part B premium increase in 2011?.
For all others, the standard Medicare Part B monthly premium will be $115.40 in 2011, which is a 4.4% increase over the 2010 premium. The Medicare Part B premium is increasing in 2011 due to possible increases in Part B costs. If your income is above $85,000 (single) or $170,000 (married couple), then your Medicare Part B premium may be higher than $115.40 per month. For additional details, see our FAQ titled: "2011 Part B Premium Amounts for Persons with Higher Income Levels".
Medicare Deductible and Coinsurance Amounts for 2010:
Part A: (pays for inpatient hospital, skilled nursing facility, and some home health care) For each benefit period Medicare pays all covered costs except the Medicare Part A deductible (2011 = $1,132) during the first 60 days and coinsurance amounts for hospital stays that last beyond 60 days and no more than 150 days.
For each benefit period you pay:
A bit earlier this year Social Security broke the bad news to Social Security recipients that, for the second year in a row, they would not be providing an increase in Social Security income. They claimed there was not an increase in inflation. Huh? They could've fooled millions of Social Security recipients. Food, gas, insurance, entertainment, etc., all seem to be higher this year than they were a year ago... or two years ago. Heck, the above information even shows that Medicare exposure went up (due to increased costs). If that's not inflation what is?
Here's the interesting thing Social Security decided to do in order to keep Social Security recipients from grabbing their pitchforks. As you can see from the information above, Medicare decided not to raise the Medicare part B premium for people that have been on Medicare prior to 2011. If your part B starts in 2011 your premium is actually slightly higher than Medicare recipients whose part B started in December 2010 or earlier.
As this is the first time Medicare has structured part B premium increases in this way you have to wonder if someone at Social Security decided that it would be best not to upset people by increasing their part B premiums when they were just told they wouldn't be given a cost of living adjustment in their Social Security income because there was no inflation for the second year in a row. It's hard to understand any other reason they would have done this. However, that's like a bear trying to hide behind a sapling oak. They're trying to hide the fact there really was inflation by not raising the part B premiums for existing Medicare recipients but everything else tells us inflation has occurred.
Maybe they'll fool some of the people; however, it might be more acceptable to treat Social Security recipients as adults and tell them the real reason there was not an increase. But what if it's that the government is trying to save money to pay for the national health care program for everybody? That probably wouldn't go over too well. So, maybe it just makes more sense to lie. It's worked before.
Let's go over the facts first. Here is a list of the exposures included with Medicare parts A & B in 2011.
Medicare Premiums for 2011:
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.
- The Part A premium is $248.00 per month for people having 30-39 quarters of Medicare-covered employment.
- The Part A premium is $450.00 per month for people who are not otherwise eligible for premium-free hospital insurance and have less than 30 quarters of Medicare-covered employment.
Most beneficiaries will continue to pay the same $96.40 or $110.50 premium amount in 2011. Beneficiaries who currently have the Social Security Administration (SSA) withhold their Part B premium and have incomes of $85,000 or less (or $170,000 or less for joint filers) will not have an increase in their Part B premium in 2011. For additional details, see our FAQ titled: Will my Medicare Part B premium increase in 2011?.
For all others, the standard Medicare Part B monthly premium will be $115.40 in 2011, which is a 4.4% increase over the 2010 premium. The Medicare Part B premium is increasing in 2011 due to possible increases in Part B costs. If your income is above $85,000 (single) or $170,000 (married couple), then your Medicare Part B premium may be higher than $115.40 per month. For additional details, see our FAQ titled: "2011 Part B Premium Amounts for Persons with Higher Income Levels".
Medicare Deductible and Coinsurance Amounts for 2010:
Part A: (pays for inpatient hospital, skilled nursing facility, and some home health care) For each benefit period Medicare pays all covered costs except the Medicare Part A deductible (2011 = $1,132) during the first 60 days and coinsurance amounts for hospital stays that last beyond 60 days and no more than 150 days.
For each benefit period you pay:
- A total of $1,132 for a hospital stay of 1-60 days.
- $283 per day for days 61-90 of a hospital stay.
- $566 per day for days 91-150 of a hospital stay (Lifetime Reserve Days).
- All costs for each day beyond 150 days
- $141.50 per day for days 21 through 100 each benefit period.
- $162.00 per year. (Note: You pay 20% of the Medicare-approved amount for services after you meet the $162.00 deductible.)
A bit earlier this year Social Security broke the bad news to Social Security recipients that, for the second year in a row, they would not be providing an increase in Social Security income. They claimed there was not an increase in inflation. Huh? They could've fooled millions of Social Security recipients. Food, gas, insurance, entertainment, etc., all seem to be higher this year than they were a year ago... or two years ago. Heck, the above information even shows that Medicare exposure went up (due to increased costs). If that's not inflation what is?
Here's the interesting thing Social Security decided to do in order to keep Social Security recipients from grabbing their pitchforks. As you can see from the information above, Medicare decided not to raise the Medicare part B premium for people that have been on Medicare prior to 2011. If your part B starts in 2011 your premium is actually slightly higher than Medicare recipients whose part B started in December 2010 or earlier.
As this is the first time Medicare has structured part B premium increases in this way you have to wonder if someone at Social Security decided that it would be best not to upset people by increasing their part B premiums when they were just told they wouldn't be given a cost of living adjustment in their Social Security income because there was no inflation for the second year in a row. It's hard to understand any other reason they would have done this. However, that's like a bear trying to hide behind a sapling oak. They're trying to hide the fact there really was inflation by not raising the part B premiums for existing Medicare recipients but everything else tells us inflation has occurred.
Maybe they'll fool some of the people; however, it might be more acceptable to treat Social Security recipients as adults and tell them the real reason there was not an increase. But what if it's that the government is trying to save money to pay for the national health care program for everybody? That probably wouldn't go over too well. So, maybe it just makes more sense to lie. It's worked before.
Richard Cantu is President of GoMedigap, one of the nation's largest Medicare supplemental insurance agencies. The mission of GoMedigap agents is to help Medicare recipients understand how Medicare supplements work and help them shop the market for the best combination of coverage and lower premiums. Visit http://www.gomedigap.com for additional information and resources including rates from such companies as Blue Cross Blue Shield, Mutual of Omaha, and many others.
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