Medicare Part A is a component of Original Medicare that provides coverage for inpatient care in hospitals, skilled nursing facilities, and hospice care. While most people do not have to pay a premium for Medicare Part A, there are other costs associated with this coverage. In this article, we will discuss the cost of Medicare Part A and what you need to know.
Premiums
Most people do not have to pay a premium for Medicare Part A because they or their spouse paid Medicare taxes while working. This is known as having "earned" Medicare Part A. If you have not earned Medicare Part A, you may be able to enroll, but you will have to pay a premium.
If you have to pay a premium for Medicare Part A, the amount will depend on how long you or your spouse worked and paid Medicare taxes. For those who have to pay a premium, the premium is up to $471 per month in 2021.
Deductibles
Medicare Part A has a deductible, which is the amount you must pay before Medicare begins to cover your care. The deductible for Medicare Part A in 2021 is $1,484 per benefit period.
A benefit period begins the day you are admitted to a hospital or skilled nursing facility and ends when you have been out of the facility for 60 consecutive days. If you are admitted to a hospital or skilled nursing facility multiple times within the same benefit period, you will only have to pay the deductible once.
Coinsurance
Coinsurance is the amount you are responsible for paying after you have met your deductible. For Medicare Part A, coinsurance is typically a percentage of the cost of your care.
Inpatient Hospital Care
For inpatient hospital care, the coinsurance for Medicare Part A is $0 for the first 60 days of a benefit period. For days 61 through 90, the coinsurance is $371 per day in 2021. For days 91 and beyond, the coinsurance is $742 per day in 2021. Medicare Part A covers the full cost of hospital care after day 150 in a benefit period.
Skilled Nursing Facility Care
For skilled nursing facility care, the coinsurance for Medicare Part A is $0 for the first 20 days of a benefit period. For days 21 through 100, the coinsurance is $185.50 per day in 2021. Medicare Part A does not cover skilled nursing facility care beyond 100 days in a benefit period.
Hospice Care
For hospice care, the coinsurance for Medicare Part A is $0 for most services. You may be responsible for a small copayment for prescription drugs and respite care services.
Conclusion
Medicare Part A provides coverage for inpatient care in hospitals, skilled nursing facilities, and hospice care. While most people do not have to pay a premium for Medicare Part A, there are other costs associated with this coverage, including deductibles and coinsurance. Understanding the cost of Medicare Part A is important to ensure that you are prepared for any out-of-pocket expenses that you may incur. If you have questions about the cost of Medicare Part A or need help understanding your Medicare coverage, it is recommended that you speak with a licensed Medicare insurance agent or a Medicare expert.