Medicare 101 Part 3

 

 

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Medicare Part B

Medicare Part B is medical coverage and covers (but not limited to):

  • Doctor / Specialists Visits
  • Outpatient Procedures
  • Durable Medical Equipment (DME)
  • Tests / Labs / X-rays

Part B Costs

Medicare Part B has an annual deductible of $183

After the deductible is satisfied:

Medicare Pays 80%

Beneficiary Pays 20%

Part B Premiums

For beneficiaries who had Medicare Part B 2017 and prior: $109.00

For beneficiaries who are new to Medicare Part B in 2017: $134.00

(The difference in premium is explained on the Medicare Cost publication)

Higher income beneficiaries may pay more for their premiums, depending on their 2014 taxes.  These premiums and thresholds can be found on the Medicare Cost publication.

If the beneficiary is drawing Social Security income, they will automatically draw the Medicare Part B premium from their check.

If the beneficiary is not drawing Social Security, they will be billed quarterly.

Delaying Medicare Part B

If a beneficiary is still working and covered by group or employer coverage, they may delay their Medicare Part B coverage in order not to pay both their group coverage premiums and Medicare Part B premiums.

They can verify with their group’s administrator that their coverage is credible.  If so, they can delay Part B.  When they are ready to leave group coverage, they will need a copy of the creditable coverage and enroll in Medicare Part B without penalty.

Medicare Part B Drug Coverage

Some prescription drugs are covered under Part B of Medicare (not Part D).  These are usually injectable drugs which are administered by a medical professional.

These drugs will not count against their Medicare Part D prescription drug costs.