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October 01, 2004

2005 Medicare Part A Premium and Deductibles

The Department of Health and Human Services (HHS) has announced the Medicare premium, deductible and coinsurance amounts to be paid by Medicare beneficiaries in 2005.

For Medicare Part A, which pays for inpatient hospital, skilled nursing facility, and some home health care, the deductible paid by the beneficiary will be $912 in 2005, an increase of $36 from this year's $876 deductible. The monthly premium paid by beneficiaries enrolled in Medicare Part B, which covers physician services, outpatient hospital services, certain home health services, durable medical equipment and other items, will be $78.20, an increase of 17.4 percent or $11.60 over the $66.60 premium for 2004.

The Part A deductible is the beneficiary's only cost for up to 60 days of Medicare-covered inpatient hospital care. However, for extended Medicare-covered hospital stays, beneficiaries must pay an additional $228 per day for days 61 through 90 in 2005, and $456 per day for hospital stays beyond the 90th day in a benefit period. For 2004, per day payment for days 61 through 90 was $219, and $438 for beyond 90 days.

For beneficiaries in skilled nursing facilities, the daily co-insurance for days 21 through 100 will be $114 in 2005, compared to $109.50 in 2004.

Most Medicare beneficiaries do not pay a premium for Part A services since they have 40 quarters of Medicare-covered employment. However, seniors and certain persons under age 65 with disabilities who have fewer than 30 quarters of coverage may obtain Part A coverage by paying a monthly premium set according to a formula in the Medicare statute at $375 for 2005, an increase of $32 from 2004. In addition, seniors with 30 to 39 quarters of coverage, and certain disabled persons with 30 or more quarters of coverage, are entitled to pay a reduced premium of $206.

For more information see MedLearn Matters Number: MM3463.

Posted by Michael McKibben at October 1, 2004 03:52 PM

Source: [http://www.mckibbencpa.com/news/000013.html]

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