If you choose Original Medicare you will get to reap much of what you have been paying into your whole working life. Medicare, like any other insurance has premiums and deductibles. Original Medicare begins with combining Part A and part B. Part A is referred to as Hospital insurance, but it also helps cover hospice, skilled nursing, and home health. Part A is sometimes called, “the free one” even though it does have a standard premium of $499 per month. Don’t panic! As long as you or your spouse has worked for 10 years in America and paid your taxes, your premium when your benefit begins is actually zero dollars. That’s not because it’s free, it's just because you have already paid it. Your whole working life, when you see taxes coming out for FICA or Medicare, this is what you were buying. You were pre-purchasing a portion of your retirement health insurance and now you get to reap the benefits of what you’ve been sowing into your whole working life. Isn’t that great?
I don’t know about you, but I would much rather pay little pieces while I’m still working, than have to come up with an extra $500 per month after I retire. Part A does have a deductible that either the patient or their medigap also called supplement could have to pay multiple times a year.
The 60 benefit period deductible for 2022 is $1556 that either you or your medigap could have to pay multiple times a year. The way a 60 benefit period deductible works is: When a patient is admitted either the patient or their supplement pays the deductible. The patient is treated, gets better and is released, and then any time that same patient is out for 60 consecutive days and gets re-admitted, either the patient or their medigap has to pay it again. It sounds complicated, just remember that you could have coverage that pays for all of it if you want.
Once that deductible is met by the patient or their medigap, Medicare part A pays 100% of fees that they approve. Isn’t that amazing? They pay 100% in a skilled nursing facility until day 20. Day 21 either the patient or their medicare supplement pays 194.50 per day. With Original Medicare part A also pays 100% after the deductible is met in the hospital until day 60, day 61 the patient or their medigap pays $389 per day, day 90 that doubles to $778. Remember you can buy a medigap also called medicare supplement to pay all of that if you want to.
If someone has Original Medicare, Part A works with Part B to cover a little over 50% of all medical cost combined. That’s pretty good considering we spend an average of over $16000 per year on medical cost between age 65 and Heaven.