MEDICARE RATES INCREASE IN 2008

The Centers for Medicare and Medicaid Services has increased Medicare Part A and Medicare Part B premiums, co-payments and deductibles for 2008.

Part A (Hospital Insurance) Premiums:
Medicare Part A pays for inpatient hospital, skilled nursing facility, and some home health care.

• Most people do not pay a monthly Part A premium because they or a spouse has 40 or more quarters of Medicare-covered employment.
• $233.00 per month for people having 30-39 quarters of Medicare-covered employment.
• $423.00 per month for people who are not otherwise eligible for premium-free hospital insurance and have less than 30 quarters of Medicare-covered employment.

Part B Premiums:
Medicare Part B pays for visits to physicians, other outpatient care, durable medical equipment, home care, certain outpatient therapies, and drugs that must be administered by physicians in their offices.

Part B monthly premiums are set according to a sliding scale based on income as follows:

Deductible and Coinsurance Amounts for 2008:
Part A: For each benefit period Medicare pays all covered costs except the Medicare Part A deductible (2008 = $1,024) during the first 60 days, and coinsurance amounts for hospital stays that last beyond 60 days and no more than 150 days.
For each benefit period you pay:

• A total of $1,024 for a hospital stay of 1-60 days.
• $256 per day for days 61-90 of a hospital stay.
• $512 per day for days 91-150 of a hospital stay (Lifetime Reserve Days).
• All costs for each day beyond 150 days in a hospital
• $128.00 per day for Skilled Nursing Facility care for days 21 through 100 each benefit period.

Part B deductible is $135.00 per year. (Note: You pay 20% of the Medicare-approved amount for services after you meet the $135.00 deductible.)

Additional information about the Medicare premiums, deductibles, and coinsurance rates for 2008 is available in the October 1, 2007 Fact Sheet titled, "CMS Announces Medicare Premiums, Deductibles for 2008" on the www.cms.gov website.

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