Updated November, 2013

2013 Medicare Premiums, Deductibles, and Copays

The Centers for Medicare and Medicaid Services (CMS) has announced the “new” Medicare premiums, deductibles, and coinsurance amounts for 2013. The standard Medicare Part B premium (single individuals with income of $85,000 or less; joint filers with income of $170,000 or less) will increase $5.00 to $104.90. So much for the 1.7% Social Security COLA!   After the Part B premium is deducted, a $1,000 monthly Social Security benefit will receive a net increase of $12, or 1.2 percent. For someone with a $2,000 monthly benefit, the net increase will be $29, or 1.45 percent.

Higher Medicare premiums apply to folks with higher incomes (see below).

Here are other Medicare figures:

• Part B premium: $104.90
• Part B deductible: $147
• Part A deductible: $1,184 for hospital stays during initial 60 days
• Co-payment for hospital stay days 61-90: $296/day
• Co-payment for hospital stay days 91-150: $592/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: $148/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., 2011 income for 2013 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 will pay in 2013 a monthly premium of $146.90.

Individuals with annual incomes between $107,001 and $160,000 and married couples with annual incomes between $214,001 and $320,000 will pay in 2013 a monthly premium of $209.80.

Individuals with annual incomes between $160,001 and $214,000 and married couples with annual incomes between $320,001 and $428,000 will pay in 2013 a monthly premium of $272.70.

Individuals with annual incomes of $214,001 or more and married couples with annual incomes of $428,001 or more will pay in 2013 a monthly premium of $335.70.

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 up to $441 per month (a $10 drop from 2012).