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Original Medicare consists of Part A, sometimes referred to as “Hospital” insurance, and Part B, often referred to as “Medical” insurance.
In a previous article, we went over the basics of Part A. You can view that by clicking here.
Now let’s take a closer look at Medicare Part B and what it covers.
Cost of Part B
Each year the Centers for Medicare and Medicaid Services (CMS) determines the cost for Part B. The monthly premium varies depending on the member’s income level.
The Part B Standard Rate (the amount most people will pay) is $170.10 in 2022. If the member’s income exceeds a certain amount, they will have to pay an Income-Related Monthly Adjustment Amount (IRMAA) in addition to the $170.10. To learn more about IRMAA, click here.
Some individuals pay a lower amount for Part B based on their income level. To read our article about saving money with Medicare, click here.
If you have Original Medicare and want to know the cost of a specific service, you can log in to your Medicare account.
Late Enrollment Penalty
There is a late enrollment penalty if you do not enroll in Part B when you first became eligible. The penalty is a premium increase of 10% per month for each 12-month period you didn’t enroll in Part B but could have.
If you miss your Initial Enrollment Period, you will need to wait to enroll during the General Enrollment Period, and your Part B would start July 1st.
What it Covers
Medicare Part B is sometimes referred to as “Medical” coverage because it covers services provided in an office setting. Typical Part B services include:
Services from doctors and other health care providers
Outpatient care
Home health care
Durable Medical Equipment
Some preventive services
If someone only has Original Medicare (and no Medicare supplement or Medicare Advantage plan), they will have to pay the Part B deductible of $233 in 2022. In addition, once they have met the annual deductible, they will have to pay 20% coinsurance for most Part B services.
There is no maximum out-of-pocket amount for Original Medicare.
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.
