Here’s what Medicare Part A costs and covers in 2021

Almost all Americans will one day rely on Medicare for help with health care. Designed primarily to cover people 65 years of age or older, Medicare consists of several different parts. Traditional health insurance includes coverage for hospital and hospital care, and is also known as Part A.

Each year, Medicare changes some aspect of its health care plan, including the amount it charges. Below, we’ll take a look at what’s in line for Medicare Part A in 2021.

What to expect from Medicare Part A

When you need to stay in a qualified hospital or nursing facility, this is when Medicare Part A coverage begins. Usually medically necessary hospital stays 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 hospital stay.

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The idea behind Medicare hospital coverage is to get you healthy and get back to your regular life. A hospital stay of at least two days is required to trigger Medicare coverage, but as you’ll see below, the federal government will cover relatively long stays.

Nursing home costs are not covered by Medicare Part A, but if you need skilled nursing care, hospital costs are eligible for coverage. Before you qualify, you usually need to have been in a hospital for at least three days. Again, the foundation of Medicare coverage here is to bring you back to a healthy life, and that is why long term care that is not related to improved health is not included.

Some extraordinary services are also covered by Part A. Palliative home care is available to terminally ill people, as is medically necessary home care for other conditions.

Medicare Part A Costs

The good news is that most people get Medicare Part A without paying a monthly premium. Payroll taxes that are withheld from your paychecks throughout your career typically cover the costs of your program. As long as you’ve 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 a shorter covered work history, monthly premiums may apply. If you’ve worked between 30 and 39 quarters, you will pay $ 259 per month in 2021, up $ 7 from 2020. Those with less than 30 quarters of eligible work history must pay $ 471 per month, or $ 13 more than the previous year.

Those who use their Medicare coverage to receive health care during the year will incur additional charges. You will need to cover your 2021 deductible of $ 1,484 up front before Medicare begins to take effect. That’s $ 76 more 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 a hospital stay at no additional cost. From day 61 to day 90, you will have to pay $ 371 per day, which is $ 19 more than in 2020. After day 90, you have 60 “life reserve days” for which you will pay $ 742 per day in 2021 , or $ 38 more than in 2020.

Stays in skilled nursing facilities have a similar cost structure. The co-payments are $ 0 for the first 20 days, then $ 185.50 per day for days 21 to 100. This represents an increase of $ 9.50 per day from the previous year. After day 100, Medicare no longer provides coverage.

Understand your hospital coverage

Health care is one of the costliest needs in retirement, so you’ll want to make the most of Medicare Part A. Knowing what it will and won’t cover will help you be perfectly prepared for your golden years. .