Almost every American will someday rely on Medicare for help with healthcare. Designed primarily to cover people aged 65 and over, Medicare has several different parts. Traditional Medicare includes coverage for hospital and inpatient care and is also known as Part A.
Each year, Medicare changes certain aspects of its health program, including the amount it charges. Below, we’ll look at what’s predicted for Medicare Part A in 2021.
What to Expect from Medicare Part A
When you need to stay in a hospital or specialized nursing unit, that’s when Medicare Part A coverage comes into play. Typically, hospital admissions that are medically necessary are covered, with Medicare paying for a semi-private room and any medical treatment, services, tests and prescription drugs. You will also be eligible to receive meals during your stay at the hospital.
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The idea behind Medicare hospital coverage is to make you healthy and allow you to get back to your normal life. A hospital stay of at least two days is required to trigger Medicare coverage, but as you will see below, the federal government will cover relatively long stays.
Nursing home costs are not covered by Medicare Part A, but if you need specialized nursing care, then inpatient unit costs it is eligible for coverage. Before you qualify, you generally need to have been in a hospital for at least three days. Again, the basis of Medicare coverage here is to return you to a healthy life, which is why long-term care that is not related to an improving medical condition is not included.
There are also some extraordinary services that are covered by Part A. Home palliative care is available for the terminally ill, as well as medically necessary home care for other conditions.
Medicare Part A Costs
The good news is that most people get Medicare Part A without paying any monthly premiums. Payroll taxes that are withheld from your paychecks throughout your career generally cover program costs. As long as you have paid Medicare through payroll taxes for at least 10 years, or have a spouse who has, you probably won’t have to pay for Part A.
But for those with shorter covered work histories, monthly premiums may apply. If you worked between 30 and 39 quarters, you will pay $ 259 per month in 2021, an increase of $ 7 in 2020. Those with less than 30 quarters of eligible work history have to pay $ 471 per month, plus $ 13 in relation to previous year’s levels.
Those who use Medicare coverage to receive health care during the year will incur additional costs. You will need to cover your $ 1,484 deductible for 2021 before Medicare starts taking effect. That’s $ 76 higher than in 2020.
In addition, there are co-payments for many Part A services. After paying the deductible, Medicare will cover the first 60 days of hospitalization at no additional cost. From days 61 to 90, you will have to pay $ 371 per day, an increase of $ 19 from 2020. After day 90, you will have 60 “lifetime reserve days” for which you will pay $ 742 per day in 2021, $ 38 more than in 2020.
Stays in qualified nursing facilities have a similar cost structure. Co-payments cost $ 0 for the first 20 days and then $ 185.50 per day for days 21 through 100. This represents an increase of $ 9.50 per day over the previous year. After day 100, Medicare offers no additional coverage.
Understand your hospital coverage
Health is one of the most expensive needs in retirement, so you will want to get the most out of Medicare Part A. Knowing what it will and will not cover, you will be fully prepared for your golden years.