Parts A & B Medicare Co-Payments and Premiums Increase in 2007
Pursuant to federal law, the premiums, deductibles and co-insurance payments for Medicare increased in January 2007.
Part A of Medicare provides coverage in a hospital as well as a nursing home. This year, the Part A deductible is $992, an increase of $40 over 2006. Medicare Part A does have a co-payment for hospital stays of between 61 to 90 days. The co-payment this year is $248. The co-payment for hospital stays for 91 days and more is $496 daily.
If an individual requires therapy or rehabilitation in a nursing home facility, then often that person will receive Medicare coverage for the first 20 days of skilled nursing care. After the first 20 days, Medicare will cover a portion of the next 80 days: i.e., days 21 through 100. Beginning January 1, the co-payment for skilled nursing care will be $124 daily. Therefore, if an individual requires rehabilitation in a nursing home facility for 100 days, the individual will be responsible to pay $9,920 for the co-insurance obligation.
Part B of Medicare pays for services rendered by a physician. Part B is optional, although the majority of Medicare beneficiaries do have Part B. Most individuals fund the Part b premium by having the monthly premium deducted from their Social Security benefit. The monthly Part B premium for 2006 was $88.50. This premium increased by almost 6 percent in 2007. Beginning January 1, the Part B premium will be $93.50 per month.
Individuals with higher income will have to pay more for the Part B monthly premium in 2007. If a person has an annual income of between $80,000 and $100,000 (married couples with income of between $150,000 to $200.000, then he or she will pay a monthly premium of $106. For persons earning more than $200,000 (married couples earning more than $400,000 per year,) the Part B premium will be $162.10 per month. The Part B deductible this year is $124. This deductible increased by almost 6 percent in 2007 as the new Part B deductible is $131.
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