Medicare and Medicaid

What are the Medicare premiums and coinsurance rates for 2005?

The following is a listing of the Medicare premium, deductible, and coinsurance rates that will be in effect in 2005:

Part A: (Hospital Insurance) Premium

• Most people do not pay a monthly Part A premium because they or a spouse has 40 or more quarters of Medicare-covered employment.
• The Part A premium is $206.00 for people having 30 to 39 quarters of Medicare-covered employment.
• The Part A premium is $375.00 per month for people who are not otherwise eligible for premium-free hospital insurance and have less than 30 quarters of Medicare-covered employment.

Part B: (Medical Insurance) Premium

$78.20 per month.

Medicare Deductible and Coinsurance Amounts for 2005:

Part A: (pays for inpatient hospital, skilled nursing facility and some home health care) For each benefit period Medicare pays all covered costs except the Medicare Part A deductible (2005 = $912) during the first 60 days and coinsurance amounts for hospital stays that last beyond 60 days and no more than 150 days.

For each benefit period you pay:

• A total of $912 for a hospital stay of one to 60 days.
• $228 per day for days 61-90 of a hospital stay.
• $456 per day for days 91-150 of a hospital stay (Lifetime Reserve Days).
• All costs for each day beyond 150 days

Skilled Nursing Facility Coinsurance

• $114.00 per day for days 21 through 100 each benefit period.

Part B: (covers Medicare eligible physician services, outpatient hospital services, certain home health services, durable medical equipment)

• $110.00 per year. (Note: You pay 20 percent of the Medicare-approved amount for services after you meet the $110.00 deductible).

Additional information about the Medicare premiums, deductibles and coinsurance rates for 2005 is available in the September 3, 2004 Health and Human Services press release titled  "HHS Announces Medicare Premium, Deductibles for 2005" on the www.hhs.gov website.