Medicare Co-Pays and Deductible for 2012

The Medicare co-pays and deductibles for 2012 were announced last week and there have been some relatively noteworthy changes that you should be apprised of. First of all, it is important to note that these co-pays and deductibles do NOT directly affect you if you have a Medigap plans that pays the Medicare co-pays and deductibles OR if you have a Medicare Advantage plan that replaces Medicare A & B.

However, if you are on ONLY “original” Medicare A & B, the following are the co-pays and deductibles that you would pay for 2012. NOTE: this information is also available at Medicare.gov.

PART A

  • Part A Deductible = $1156 per benefit period
  • Part A Premium = $451/month (this only applies to people who have not qualified for Part A entitlement through work during your lifetime
  • $289/day for days 61-90 of each benefit period
  • $144.50/day for days 21-100 of each benefit period

PART B

  • Part B Deductible = $140/year
  • Part B Premium = $99.90/month. You may pay more if you exceed $85,000/year in annual income.
  • Part B Coinsurance = 20% of the Medicare-approved amount for covered services
  • Part B Coinsurance = 40% for mental health coinsurance for Medicare-approved covered services

Overall, some of these changes, in particular the Part B deductible and premium, are definitely a welcome sight for Medicare-eligible individuals. The Part B deductible in 2011 is $162/year so it is going down by $22/year for 2012.

The effects that this information will have on a Medigap insurance remains to be seen. It can be expected that the claims ratios on Plan F’s would be smaller than in year’s past since that gap (which ‘F’ covers) is smaller. This may help keep ‘F’ premium rates more stable with some insurers. In the past, Plan G, which doesn’t cover the Part B deductible, has been the more rate-stable choice over time. This change may level off rate stability on ‘G’ and ‘F’.

To get updated information about Medicare Supplement rates for 2012, you can contact us at 877.506.3378 or visit our website to request this information by email. To get the information by email, go to 2012 Medicare Supplement prices.

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