Original Medicare 2015 costs for Medicare Part A and B have just been released. See below for what your monthly and yearly Medicare costs will be.

Medicare Part A 2015 Costs

Medicare Part A covers hospitalization. Here is what you’ll pay in 2015:

  • Premium: $0 for most people, but if you don’t qualify for a $0 premium it will cost you $407*
  • Deductible: $1,260 (for each benefit period)
  • Hospitalization Coinsurance Days 1-60: $0
  • Hospitalization Coinsurance Days 61-90: $315 per day
  • Hospitalization Coinsurance 60 Lifetime Reserve Days: $630 per day
  • Hospitalization Costs after reserve days: 100% of costs
  • Skilled Nursing Facility Coinsurance Days 1-20: $0
  • Skilled Nursing Facility Coinsurance Days 21-100: $157.50 per day
  • Hospice Care: $0*
  • Home Health Care: $0**
  • Max Out of Pocket Costs: Unlimited

*If you or you spouse has not worked for a minimum of ten years at a job that pays into Social Security you are responsible for the premium.

**There may be additional durable equipment costs and/or respite care costs.

Medicare Part B 2015 Costs

Medicare Part B covers day to day care. These are your costs for 2015:

  • Premium: $104.90**
  • Deductible: $147
  • Clinical Lab Services: $0
  • Approved doctor’s services: 20%
  • Durable Medical Equipment: 20%
  • Preventive Care: $0
  • Max Out of Pocket Costs: Unlimited

**If your annual income is 85k or higher you’ll pay a higher premium.

Options for Covering Medicare Costs

Medicare leaves some gaps in coverage, as you can see from the above coverage. If you’re concerned about out of pocket costs you may choose a local-HMO/PPO Medicare Advantage plan that maxes out your out of pocket cost at $6750 (but many plans offer lower maximums) and usually covers prescription drugs and extras like dental and vision OR you can choose nationwide Medigap coverage that may cover all your Original Medicare costs and adds an additional 365 of hospitalization. If you choose a Medigap plan you’ll want to consider a stand-alone prescription drug plan (Medigap plans do not cover Rx).

Next Steps
For further questions about your 2015 Medicare costs call the number above or click here if you want to get a Medicare Insurance quote to learn more about plans that can limit your out of pocket costs.