Original Medicare otherwise known as Medicare Parts A & B was formed by the federal government and helps financially assist qualified enrollees with hospital (Medicare Part A) and medical insurance (Medicare Part B). While the government does assist plan participants, beneficiaries will still have to shoulder costs in the form of premiums, deductibles, and coinsurances. There are various plans and parts in addition to what’s covered in Original Medicare that can be tailored to your healthcare and financial situation. It is highly encourage to speak with a licensed insurance agent to receive the correct support needed when finding the best coverage plan and its cost.

What Are the Differing Costs Associated with Original Medicare?

The premium cost comes in the form of a monthly set payment that is typically not paid for Part A for most enrollees and may cost around $170 per month for Part B. A copay is a set rate an individual pays for doctor visits or prescription refills. In general, with Original Medicare there are no copayments. Medicare Part A and B have different deductibles which is the amount you may pay for covered health care services before Medicare starts to pay for the healthcare costs covered under the respective plan. Coinsurance is what the beneficiary will pay as a percentage of Medicare-approved costs after you have paid the deductible.
These costs can change annually. There are other Medicare plans and parts in addition to Original Medicare that individuals can enroll in which can be tailored to your healthcare and financial situation. This article should provide a helpful overview regarding the costs of Original Medicare Parts A & B.

Costs for Medicare Part A – Hospital Insurance

Part A Costs What you will pay this year (2022)
Premium $0 for the majority of participants. This would be individuals or their spouses that paid Medicare taxes while working (10 years). This is considered premium-free Medicare Part A. Those that are not qualified can pay up to $499 per month.
Deductible $1,556 per hospital benefit admittance period

(inpatient hospital stays)

No coinsurance once deductible has been paid for the first 60 days of hospitalization.

>$0 (Days 0-60)

>$389 per day (Days 61-90)

>$778 per day (Lifetime Reserve Days 91-150)

>Once Lifetime Reserve Days (after day 150) are exhausted you must pay 100% of cost

Costs for Medicare Part B – Medical Insurance

Part B Costs What you will pay this year (2022)
Premium $170.10 per month. Rates can be adjusted higher based on income. Individuals can reference the Income Related Monthly Adjustment Amount (IRMAA) to see if they fall into a higher premium bracket. This rate can also be adjusted higher with late enrollment penalties if you didn’t sign up when you were first eligible (typically at age 65). This premium can change annually. Beneficiaries will pay this premium every month regardless of whether the covered services were used.
Deductible $233 per year.
Coinsurance After deductible is paid:

You will pay 20% of Medicare-approved costs relating to: durable medical equipment, doctor services (including most relating to hospital inpatient), outpatient therapy