Original Medicare is managed by the federal government and includes hospital and medical insurance. When beneficiaries enroll in Original Medicare they are receive Parts A and B coverage.
When choosing a doctor or other health care provider, you can go to any one that has a contract with Medicare. You also won’t have to pick a primary care doctor and don’t need a referral to see a specialist, although the one you choose must be enrolled in Medicare.
Part A will cost beneficiaries up to $426 each month, but most receive coverage at no cost to them. Individuals who receive benefits from Social Security or are eligible for Social Security will be issued a premium-free Part A plan.
The Medicare Part B premium is $104.90 per month with a $147 per year deductible. This is coverage you’ll want to sign up for as soon as you’re eligible or else you’ll have to pay a late enrollment penalty. Part B premiums are determined by income, so people who have an income of more than $214,000 will pay a monthly premium of $335.70.
Beneficiaries who enroll in Original Medicare often have monthly premiums as well as an annual deductible. There is no yearly limit for what you’re required to pay out-of-pocket and there are several factors to know about that will have an effect on these costs:
- Your out-of-pocket expenses can vary depending on whether you have Medicare Part A or Part B. However, most beneficiaries have both.
- If a doctor or health care provider does not accept Medicare, your costs will be higher.
- Depending on the type of health care you need and how frequently, out-of-pocket expenses may be more.
- Beneficiaries’ out-of-pocket costs can vary depending on whether or not they choose to get services and supplies covered by Medicare. When you choose a supply or service not covered, then you’ll be left to pay for all the costs unless you have a coinsurance to help.
- You may find that your costs are lower if you get help paying your Medicare costs.
- A Medicare Supplement Insurance policy will lower costs. This plan is also known as Medigap because it covers the “gap” you may be left with.
If you choose to enroll in a Medigap policy, you’ll purchase it from a private company. Although the plan will help pay for some health care costs not covered by Medicare, it won’t cover copays and deductibles. You must have Medicare Parts A and B to purchase a supplement plan and pay an additional monthly premium.