Medicare Parts A & B

Original Medicare is composed of two parts; Part A and Part B (know as Original Medicare). Part A is paid for in full from Medicare taxes while working (or a spouses work history), and Part B is partially paid from taxes, but is supplemented with a Part B premium. Medicare Part B enrollees with higher incomes could pay a higher Part B premium depending upon the extent it exceeds $85,000 ($170,000 for married couples).

Upon turning 65, one must enroll in Medicare Part A, but Part B is optional; some people may have other insurance coverage that is primary (certain company group plans or retiree plan). In these cases it is not always necessary or prudent to enroll in Part B. Review your options carefully as there are penalties for not enrolling in Part B when eligible and without other primary coverage.

Click here to see the 2012 adjusted Medicare Part A and Part B benefit summary.

Be sure your doctor accepts Medicare (also known as the Medicare Assignment). As long as your provider accepts Medicare, you will pay just the 20% coinsurance for the specified Part B services. If the provider agrees to see Medicare patients but doesn't accept the Medicare Assignment, they can charge up to 15% more than the Medicare reimbursement rate. If you choose to see this provider, you will be responsible for paying the 15% in addition to the 20% coinsurance amount. Medicare Supplements may cover all or part of these gaps.