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When you’re new to Medicare, all of the different parts can be confusing. When you hear the term Original Medicare, it’s referring to Medicare Part A and Part B. Part A and Part B are insurance offered through the federal government.
So first, let’s take a look at the basics of Medicare Part A.
Cost of Part A
Most people don’t pay a monthly premium for Part A. When you (or your spouse) were working, you may have paid a Medicare tax which would entitle you to premium-free Part A.
If you did not work long enough (or did not pay into Medicare while you were working), you could still get Part A, but you will need to pay a premium. The Part A premium in 2022 is between $274 and $499 per month. To find out if you qualify for premium-free Part A, click here.
Medicare Part A has deductibles, copayments, and coinsurance for certain services. Because of these costs, some people choose to enroll in a Medicare supplement or a Medicare Advantage plan.
Late Enrollment penalty
If you do not enroll in Part A when you are initially eligible, and you are not entitled to premium-free Part A you will have to pay a penalty for twice the number of years you could have been enrolled but were not. The Part A penalty is 10 percent of the Part A premium the year you enroll.
So, for example, say you were eligible for Part A in January of 2017 but did not enroll until January 2019, and you did not have any other coverage during that time. You will have to pay an extra $43.70 monthly for the first four years because you enrolled in Part A late.
What it Covers
Part A is sometimes called “Hospital” insurance because it covers many inpatient services. For example, Medicare Part A covers inpatient hospital stays, skilled nursing facility care, home healthcare, and hospice. There are deductibles, copayments, and coinsurance amounts associated with these services.
Original Medicare is made up of Part A and Part B. To learn more about Part B, click here.
Christina Valenzuela
Christina Valenzuela is the co-owner of Vista Mutual Insurance Services, an insurance agency that focuses exclusively on the needs of Medicare beneficiaries. She has worked in the Medicare insurance industry since 2006 and is a licensed insurance producer in multiple states.
Although we strive to be as accurate as possible, any differences between this document and the information on Medicare.gov will be governed by the information on Medicare.gov.
