Updated November, 2012

2012 Medicare Premiums, Deductibles, and Copays

The Centers for Medicare and Medicaid Services (CMS) has announced the “new” Medicare premiums, deductibles, and coinsurance amounts for 2012. The standard Medicare Part B premium will increase $3.50 to $99.90. The 2011 “standard” rate applied to most beneficiaries (those who have their Medicare Part B premiums withheld from their retirement benefits – for others the premium was $115.40 – and they are getting a break).

Here are other Medicare figures:

• Part B premium: $99.90
• Part B deductible: $140
• Part A deductible: $1,156 for hospital stays during initial 60 days
• Co-payment for hospital stay days 61-90: $289/day
• Co-payment for hospital stay days 91-150: $578/day
• Patient responsible for ALL Part A costs beyond day 150 (thus the importance of a good Medicare supplemental policy)
• Skilled nursing facility co-payment, days 21-100: $144.50/day for days 21-100

As directed by 2003 Medicare law, higher income beneficiaries will pay higher Part B premiums. Social Security will base the premiums on reported income (for federal tax purposes) from two years previously (e.g., 2009 income for 2011 premiums). Following are the higher premium rates:

Individuals with annual incomes between $85,000 and $107,000 and married couples with annual incomes between $170,000 and $214,000 in 2012 will pay a monthly premium of $139.90.

Individuals with annual incomes between $107,001 and $160,000 and married couples with annual incomes between $214,001 and $320,000 in 2009 will pay a monthly premium of $199.80.

Individuals with annual incomes between $160,001 and $214,000 and married couples with annual incomes between $320,001 and $428,000 in 2009 will pay a monthly premium of $259.70.

Individuals with annual incomes of $214,001 or more and married couples with annual incomes of $428,001 or more in 2012 will pay a monthly premium of $319.70.

Part A Premiums

Because most people have 40 or more quarters of covered employment, they do not pay Medicare Part A premiums. Other people may “buy-in” to Medicare Part A – the most commonly effected individuals are those with disabilities who do not have a significant work history. The buy-in rates for Part A are as follows:

• 30 to 39 covered quarters:   $248 per month
• Less than 30 covered quarters:   $451 per month