Question

In it's current form, Medicare beneficiaries pay premiums, deductibles, and copays, unless they are also covered by Medicaid. Is this appropriate? Should we make Medicare free to everyone over 65? Is so how do we pay the cost of this coverage?

Answer 1

Premiums: There's no premium for Part A if you paid enough in Medicare taxes while working. Part B requires a monthly premium — at the standard rate of $121.80 a month in 2016. Part D drug plans charge additional premiums, and so do most Medicare Advantage plans.

You pay higher premiums for Parts B and D if your modified adjusted gross income on your latest tax return is above $85,000 if you're single, or $170,000 if you're married and filing joint returns. (For details see "Medicare Premiums: Rules for Higher-Income Beneficiaries.")

Deductibles: You pay annual deductibles for Part B ($166 in 2016) and Part D (up to $360 in 2016; or up to $400 in 2017) before coverage kicks in. Part A has a deductible ($1,288 in 2016) for hospital stays. Some Part D and Medicare Advantage plans reduce or waive deductibles.

Copays: In traditional Medicare (Parts A and B), you pay 20 percent of the Medicare-approved amounts for most Part B services. In Part A, after meeting the deductible you pay nothing more for up to 60 days in the hospital in any one benefit period, but additional days may require daily copays. In Part D and Medicare Advantage plans, you pay the copays required by your plan.