Medicare Premiums for 2011

• Part A (Hospital Insurance) Premium
• Part B (Medical Insurance) Premium
• Part A Deductible & Coinsurance
• Part A Skilled Nursing Facility Coinsurance
• Part B Deductible & Coinsurance
  

Part A (Hospital Insurance) Premium

• Most people do not pay a monthly Part A premium because they or a spouse has 40 or more calendar quarters of Medicare-covered employment.
• If you aren't eligible for premium-free Part A, you may be able to buy Part A if you meet one of these conditions:
  
  • You're 65 or older
  • You're entitled to (or enrolling in) Part B
  • You meet the citizenship or residency requirements; OR
  • You're under 65, disabled, and your premium-free Part A coverage ended because your returned to work.
• The Part A premium is $248.00 per month for people having 30-39 calendar quarters of Medicare-covered employment (down from $254.00 in 2010)
  
• 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 (down from $461.00 in 2010).

CAUTION: In most cases, if you choose to buy Part A, you must also have Part B and pay a monthly premium for both. If you have limited income and resources, your state may help you pay for Part A and or Part B.

Part B: (Medical Insurance) Premium

Most beneficiaries will continue to pay the same $96.40 premium amount in 2011 if they became covered by Part B in 2009 or earlier (or $110.50 if they became covered by Part B in 2010).  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 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.  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.

NOTE: If your modified adjusted gross income (MAGI) as reported on your federal income tax return from 2 years ago (the most recent tax return information provided to Social Security by the IRS) is above a certain amount, you may pay more.

CAUTION: If you don't sign up for Part B when you're first eligible, you may have to pay a late enrollment penalty for as long as you have Medicare. Your monthly premium for Part B may go up 10% for each full 12-month period that you could have had Part B, but didn't sign up for it. Usually, you don't pay a late enrollment penalty if you meet certain conditions that allow you to sign up for Part B during a special enrollment period.

Medicare Deductible and Coinsurance Amounts for 2011  

Part A (Hospital Insurance): (helps cover the cost of inpatient hospital stays, 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 inpatient hospitalization benefit period* in 2011 you pay:

• A total of $1,132 for a hospital stay of 1-60 days (up from $1,100 in 2010 or 2.9%).
• $283 per day for days 61-90 of a hospital stay (up from $275 in 2010, or 2.9%).
• $566 per day for days 91-150 of a hospital stay (Lifetime Reserve Days) [up from $550 in 2010, or 2.9%].
• All costs for each day beyond 150 days

*A new benefit period begins when you have been out of the hospital for 60 or more consecutive days.

• $0 for home health care services with 20% of the Medicare-approved amount for durable medical equipment
• $0 for hospice care: A copayment of up to $5 per prescription for outpatient prescription drugs for pain and symptom management; 5% of the Medicare-approved amount for inpatient respite care (short-term care given by another caregiver, so the usual caregiver can rest).

Skilled Nursing Facility Coinsurance

• $141.50 per day for days 21 through 100 each benefit period (up from $137.50 in 2010, or 2.9%). You pay all of the costs for each day after day 100 in a benefit period.
  

Part B (Medical Insurance): (helps covers Medicare eligible physician services, outpatient hospital services, certain home health services, durable medical equipment, and preventive care services)

• $162.00 per calendar year in 2011. (Note: You pay 20% of the Medicare-approved amount for most services after you meet the $162.00 deductible.) [The deductible was $155.00 for 2010, up 4.5%.]

Citation: cms.gov