Medicare Part B
There are two parts to Original Medicare. The second is Medicare Part B; this part deals with outpatient care and most doctor services.
What Does Part B Cost?
Most people will pay the standard Part B premium amount.
In 2023, the standard Part B premium amount is $164.90.
If your modified adjusted gross income exceeds a certain amount, you may be subject to an Income Related Monthly Adjustment Amount (IRMAA). IRMAA is an extra charge in addition to your Part B premium. This charge is determined by your tax return from 2 years ago.
Part B Enrollment
Some people get Medicare Part B automatically and some people need to sign up for it.
If you don't sign up for Part B when you first become eligible, you might have a late enrollment penalty.
Part B Payment
Your part B premium is automatically deducted from your Social Security benefit (or Railroad Retirement).
If you don't receive either of these benefits, you will receive a bill for your Part B premium.
What Does Part B Cover?
Part B Covers:
Medically necessary services, both inpatient and outpatient, including speech and physical therapy
Preventative services, such a flu prevention
Durable medical equipment
Mental health care: outpatient, inpatient, and partial hospitalization
Each calendar year, you are responsible for the Part B deductible which, in 2023, is the first $226 worth of services. After the deductible has been met, Medicare will generally cover 80% of approved medical charges. The remaining 20% is also your responsibility, without a "cap" and no "stop loss".
This is when a Medicare Supplement (Medigap) plan comes into play.
You can obtain a plan that pays the 20% excess charge and, depending on when you went on Medicare, may also pay the Part B deductible
(see the Medicare Supplements tab).