2010 MEDICARE RATES

Source: AARP.org

MEDICARE SETS THE PREMIUMS FOR MEDICARE EACH YEAR
ALONG WITH THE MEDICARE DEDUCTIBLES AND MEDICARE
COPAYMENTS. HERE, FROM AARP, ARE RATES FOR 2010:

Part A Premiums

Most people do not pay for Part A (hospital coverage)

because they have paid Medicare taxes for 40 or more

quarters while working. Those with 30 to 39 quarters

of covered employment can buy Part A coverage.

It costs $254 a month. Those who have less than

30 quarters of covered employment will have to pay

$461 to receive Part A coverage.

Part B Premiums

Most people on Medicare will not see a Part B

monthly premium increase as a result of a

"hold harmless" provision in the current law.

This allows most people on Medicare to be

protected from any increase in their premiums

for 2010. What this means is that for 2010,

most people on Medicare will pay $96.40 a

month for Part B (physician) coverage.

However, some people, including those

newly enrolled in 2010, will pay $110.50. Higher-income people will pay even more.

Tax Return Income(Individual)

Up to $85,000
"held Harmless"

Up to $85,000
"not held Harmless"

$85,001 to $107,000

$107,001 to $160,000

$160,001 to $214,000

Over $214,000

Joint Tax Return Income (Married Couple)

Up to $170,000


Up to $170,000


$170,001 to $214,000

$214,001 to $320,000

$320,001 to $428,000

Over $428,000

2010 Monthly Part B Premium

$96.40


$110.50


$154.70

$221.00

$287.30

$353.60

If you're on Medicare before January 1, 2010, you'll be told at the end of 2009 about the 2010 premium, as well as any related changes in your Social Security benefits. If you enroll after the first of the year, you'll hear shortly after enrolling if you have to pay the higher rate.

Deductibles and Copayments

Part A Deductible: The 2010 Part A deductible is

$1,100 per illness, up $32 from 2009.

Part B Deductible: The 2010 Part B deductible is

$155, up $20 from 2009.

Part A Copayments: The Part A deductible covers

the first 60 days of a Medicare-covered hospital stay.

Then you pay $275 a day for days 61 through 90.

After the 90th day, your co-pay for lifetime reserve days

is $550 a day.

For more information call Medicare toll-free at

1-800-633-4227 or visit www.medicare.gov on the Web.

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