Part A Costs
Beep, beep! The first stop on your road to retirement will be your Part A. This will be your coverage for hospital costs and inpatient stays. This is the first part to Original Medicare, and the additional parts to Medicare will require you to have Part A before you can move forward. So, how much will this first piece of the puzzle cost you?
First off, it is important to know that most people receive their Part A at no cost. How do you know if you qualify? Well, if you or your spouse have worked 40 quarters (10 years) or more in the U.S., then your Part A is free. You can also receive a premium-free Part A if you already receive retirement benefits from Social Security or the Railroad Retirement Board.
If you are under age 65, you could obtain Part A for free if you received Social Security or Railroad Retirement Board disability benefits for at least 24 months or if you have ESRD (End-Stage Renal Disease) and meet the requirements.
If you do end up having to pay for your Part A coverage, the most you will pay for your premium is $471. This depends on how many quarters you have contributed. If you or your spouse have worked between 30 and 39 quarters (7.5 and 10 years), then your premium will be $259.
Part A starts off great if you find yourself not charged with the monthly premium. However, you still have a deductible with your Part A coverage. This amount changes year-to-year. The 2021 Part A deductible is $1,484 for each benefit period (this period begins the day you are admitted). If you are in the hospital between 1 and 60 days, you will have a $0 coinsurance (like a co-payment) for your stay. If you are in the hospital between 61 and 90 days, you are responsible for a $371 coinsurance per day of each benefit period. Days 91 and beyond are going to be a $742 coinsurance per each “lifetime reserve day”. If beyond this, you will be responsible for the full costs of your stay.
Now that you know how much your Part A will cost you, it is important to know when to enroll to avoid a late enrollment penalty. You will need to enroll in Part A during your Initial Enrollment Period (3 months before your 65th birth month, the month of your birthday, 3 months after your 65th birth month). If you do not enroll when eligible, then your monthly premium will go up 10%.The parts of Medicare can be difficult to keep up with. If you find yourself needing help with learning more about Medicare, call us to speak with an advisor (877) 759-5762 opt. 2.