Medicare Part A is Hospital Insurance that helps pay for inpatient care and related inpatient services at:

- Hospitals

- Skilled nursing facilities

- Hospice

It also covers some rehabilitation services and outpatient home health care after a qualifies hospital stay.

Medicare Part B is Medical Insurance that covers care at a clinic or at a hospital as an outpatient. Covered services include:

-Doctor Visits

-Ambulatory Surgery Center Services

-Ambulance and Emergency Room Services

-Preventive services like a flu shot or a mammogram

-Clinic Laboratory Services

-X-ray's, MRI Scans, CT Scans, EKG and diagnostic tests

-Physical Therapy, Occupational Therapy, speech and pathology services

-Mental Health Care

-Durable medical equipment for use at home like a wheelchair or walker

Part A is free if you worked and paid Medicare taxes for at least 10 years. You may also be eligible because of your current or former spouse’s work.

Part B has a monthly premium that is either deducted from your monthly Social Security benefits check or that you pay directly to Medicare. The amount you pay can vary depending on your tax reported income from two years prior. Monthly Part B premium costs in 2024 begin at $174.70, an increase of $9.80 over 2023 premiums. Monthly Part B premiums are set by Medicare and subject to change annually.

Enroll in Original Medicare (Parts A & B) on time to avoid late enrollment penalties.

Part A Late Enrollment Penalty

If you must pay a Part A premium and enroll late, you could pay a penalty. The late enrollment penalty is 10% of the premium. You pay the penalty in addition to your premium for twice the number of years you delay enrollment. For example, If you delayed enrollment for 2 years, you will pay an additional 10% of the Part A premium for 4 years.

Part B Late Enrollment Penalty

The Part B penalty is 10% of the monthly premium amount for each full 12-month period enrollment is delayed. You pay the penalty in addition to your premium for as long as you have Medicare Part B. For example, If you delayed enrollment for 3 years, you will pay an additional 30% of the Part B premium as long as you have Part B.