Part A covers hospital care. It is free for anyone who has paid Social Security and Medicare payroll taxes for 10 years (40 quarters of work) and for the spouse of a person who has paid the taxes.
In 2013, people with 30-39 quarters of Medicare-covered employment are required to pay a premium of $254 per month. For those people who are not eligible for Part A and have fewer than 30 quarters worked, the premium is up to $441 each month in 2013. Higher-income consumers may pay more.
Those who don't purchase Part A when they first become eligible will incur an increase in the monthly premium of 10 percent. That increase will apply for twice the number of years an individual could have had Part A, but didn't sign up.
There are various co-payments and deductibles. The first day in the hospital will cost a beneficiary $1,184 in 2013. The next 59 days are free. There is a co-payment of $296 per day for days 61-90. For days 91-150, the co-payment is $592 per day.
After a hospital stay of three days or more, some patients may be transferred to a skilled nursing facility for rehabilitation. The first 20 days are free. For days 21-100, the co-payment is $148.00 per day. Beneficiaries pay all costs for each day after day 100 in a benefit period.
Part B covers doctor bills. There is a premium of $104.90 per month in 2013 for the majority of the 47 million beneficiaries--individuals with income up to $85,000 per year, and married couples with incomes up to $170,000. The premium is higher for individuals with incomes above $85,000 per year and for married couples with incomes above $170,000 per year.
Beneficiaries filing an individual tax return pay a monthly premium in 2013 of $146.90 if their income is $85,001-$107,000; $209.80 if their income is 107,001-160,000; $272.70 if their income is $160,001-$214,000; $335.70 if their income is above $214,000.
For beneficiaries filing jointly, the 2013 Part B monthly premium is $146.90 if their income is $170,001-$214,000; $209.80 if their income is $214,001-$320,000; $272.70 if their income is $320,001-$428,000; and $335.70 if their income is above $428,000.
How Much Does Part A Cost Beneficiaries?
How Much Does Part B Cost Beneficiaries?
How Are Medicare Premiums Calculated?
Does Medicare Cover All of Beneficiaries' Medical Expenses After Age 65?