CMS Releases 2010 Medicare Premium and Deductible Amounts

The Centers for Medicare & Medicaid Services (CMS) recently announced the standard premium and deductible amounts for Medicare Parts A and B for 2010. Here is a summary of the 2010 values released by CMS:

Medicare Part A Premium
While approximately 99 percent of Medicare beneficiaries do not have to pay a premium for Part A services, several seniors and certain people under age 65 with disabilities may obtain Part A coverage by paying a monthly premium of $461 per month (up from $443 in 2009). Individuals entitled to a reduced monthly premium will be required to pay $254 a month for coverage (up from $244 in 2009).

Medicare Part A Deductible and Coinsurance Amounts
The Part A deductible, paid by the beneficiary when admitted as a hospital inpatient, has increased to $1,100 (up from $1,068 in 2009). This deductible is the beneficiary’s only cost for up to 60 days of Medicare-covered in-patient hospital care in a benefit period. Beneficiaries must pay an additional $275 per day (up from $267 in 2009) for days 61 through 90 in 2010, and $550 per day (up from $534 in 2009) for “lifetime reserve days” that can be used for hospital stays beyond the 90th day in a benefit period. Daily coinsurance for days 21 through 100 in a skilled nursing facility will be $137.50 in 2010 (up from $133.50).

Medicare Part B Premium and Deductible
As required in the Medicare Prescription Drug, Improvement, and Modernization Act of 2003, the Part B premium a beneficiary pays each month is based on his or her annual income. Most Medicare beneficiaries will continue to pay the same Part B premium of $96.40 in 2010. Those beneficiaries who have the Social Security Administration (SSA) withhold their Part B premium and have incomes of $85,000 or less for individual filing (or $170,000 or less for joint filers) will not have an increase in their Part B premium in 2010.

For all other beneficiaries, the standard Part B monthly premium will be $110.50 in 2010 (a 15% increase from 2009). If your income is above $85,000 (single) or $170,000 (married couple), then your Medicare Part B premium may be higher than $110.50 per month.

Medicare Part D Deductible
The Part D deductible has increased to $155 in 2010 (up from $135).

To view specific rate information for beneficiaries earning more than the statutory amount, please see the official CMS release. If you have any questions about these new values, please contact our office at 919-403-1986.

Important Notice: Hill, Chesson & Woody does not engage in the practice of law, accounting, or medicine. Therefore, the contents of this communication should not be regarded as a substitute for legal, tax, or medical advice.

December 1, 2009

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