When shopping for Medicare supplement insurance to help cover the gaps in your Medicare Part A and Part B coverage, it is important to know what your out of pocket expenses will be each year.
The Part A and B deductible amounts increase each year as determined by the Centers for Medicare and Medicaid Services. All coinsurance amounts are also adjusted each year. Thus, you are purchasing coverage for out-of-pocket expenses now as well as higher amounts in the future.
|Medicare Gap||2010||2011||% Increase|
|Part A Deductible (Inpatient Hospital)||$1,100||$1,132||2.91%|
|Part B Deductible (Physician’s Services & Supplies)||$155||$162||4.52%|
|Hospital Coinsurance Days 61-90||$275||$283||2.91%|
|Hospital Coinsurance Days 91-150 (lifetime reserve)||$550||$566||2.91%|
|Skilled Nursing Facility Coinsurance||$137.50||$141.50||2.91%|
The year over year percentage increase from 2010 to 2011 are nominal – none more than 5 percent. However, it is important to keep these figures in mind when comparing supplemental policies to Advantage plans. Medicare Advantage plans can have a great deal in out-of-pocket expenses when compared to comprehensive Medigap policies like Plans C, D, F and G.
Each year, the coinsurance and deductible amounts are slated to increase. When choosing a plan that may not cover some of the above listed features, it is important to know that these amounts can add up over time – especially the hospital and skilled care coinsurance out of pocket expenses.
Medicare Part B monthly premiums will remain at $96.40 for most beneficiaries in 2011. Those who have their premiums withheld from their Social Security checks will not have a premium increase from year 2010.
Those who have not yet elected to receive Social Security or who do not have their Part B premiums withheld from their monthly checks will pay $115.40 in year 2010.
This is a 4.4% increase year over year for those Medicare beneficiaries. In other words, the federal government is providing an incentive for eligible citizens to take their Social Security payments earlier rather than waiting.
Higher income beneficiaries will pay $115.40 monthly as well as an income-related monthly adjustment depending on overall declared income as reported to the I.R.S. This income adjustment should factor in to your decision to opt into Medicare A and B at age 65 if you are still working while collecting significant income.
In some cases, it may make financial sense to stay on an employer sponsored plan (if available) as oppose to signing up for Part B. However, some companies will encourage senior employees to disenroll from group coverage or not offer continuing coverage at all.
It is also very important to find out if you are required to sign up for Part B through the Social Security Administration at age 65 based on the size of your employer. That is to say some employees over age 65 who continue working may still need to enroll in both Parts A and B regardless of their group coverage status.
Hyers and Associates is a full service, independent Medicare supplement insurance agency offering quotes from several carriers.
Contact us for quotes and information today!
Category: Medicare Supplements