Medicare is a federally administered health care program available to elderly and disabled citizens of the United States who have fulfilled certain work requirements. Those who have worked at least 10 years in the United States get some parts of Medicare for free. However, while some aspects of Medicare have no costs, the entire program is not free and has several costs associated it. Some of those costs are deductibles.
Types of Medicare
Medicare offers inpatient hospital care (Part A), outpatient doctor visits (Part B) and a prescription drug benefit (Part D). Medicare is available two ways. A beneficiary can take original Medicare, or they can opt for a private plan which typically supplies Part A, B and D all in one package. These are called Medicare Advantage plans. Each component of Medicare has its own deductible.
What is a Deductible?
A health insurance deductible is the amount that a beneficiary must pay for care before the insurance will start paying for any costs. The deductible repeats every benefit period, and in the case of Medicare, this is an annual expense.
Costs
Part A has a deductible that you must pay when receiving hospital benefits that amounted to $1,100 in 2010. Part B has a deductible you must meet before receiving outpatient services. This was $155 in 2010.
Part D works a little differently because all Part D plans are administered by private companies. Some plans will have a deductible, and some will not. However, all plans may not charge a deductible more than $310, as of 2010.
All deductibles gradually increase from year to year.
If you have a Medicare Advantage plan, you may not be charged a deductible at all. All Medicare Advantage plans are subject to different costs, and they may or may not charge any deductible.
Medigaps
When original Medicare recipients want to curb some of their costs associated with Medicare, one option is to purchase a Medicare supplemental plan called a Medigap plan. These plans work with original Medicare to fill in some of the costs left. There are 12 Medigap plans, labeled A-L. According to Medicare Interactive, Plans B-L cover the Part A hospital deductible, and plans C, F and J cover the Part B deductible.
Help for Low-income Beneficiaries
If a beneficiary is struggling to pay deductibles, and has a low income, he may qualify for one of several programs that help alleviate costs associated with Medicare, including deductibles.
Medicare Savings Programs are one option offered through states' Medicaid agencies. If qualified for the Qualified Medicare Beneficiary portion of the program, Part A and B deductibles are both paid for. Some state pharmaceutical assistance programs may also pay for these costs.
Extra Help is a federal program administered by the Social Security Administration that will pay for qualified individuals' Part D costs, including the deductible.
Tags: costs associated, Medicare Advantage, original Medicare, Part deductible, 2010 Part
