Medicare Premiums, Deductibles, and Copays Change for 2014

Update: You can find the 2015 benefit amount increases in Nolo's  2015 Medicare update.

Here are the new numbers for Medicare premiums, deductibles, and copays for 2014

Part A Costs

Most people don't pay a monthly premium for Medicare Part A (hospital insurance). But if you have to pay for Part A because you or your spouse doesn’t have a long enough work history, you'll pay between $215 (for 30-39 work credits) and $426 (for fewer than 30 work credits).

In 2014, you’ll also pay a $1,216 deductible for each benefit period in which you use hospital or skilled nursing inpatient care, in addition to the following copays.

  • Hospital days 61-90: $304 coinsurance per day of each benefit period
  • Hospital days 91 and beyond: $608 coinsurance per each lifetime reserve day for each benefit period
  • Skilled nursing days 21-100: $152 coinsurance per day of each benefit period.

Part B Costs

Most people pay a Part B premium of $104.90 each month. However, if your adjusted gross income is over $85,000 (or $170,000 for a couple), the monthly premium is higher, as follows:

Yearly Income

Monthly Premium

single $85,000–$107,000 $146.90
married $170,001–$214,000
single $107,001–$160,000 $209.80
married $214,001–$320,000
single $160,001–$213,000 $272.70
married $320,001–$426,000
single more than $213,000 $335.70
married more than $426,000

 

The Part B deductible for 2014 is $147 per year.

There are also caps on the following Part B services for 2014:

  • Cap on outpatient physical therapy and speech-language pathology combined: $1,900
  • Cap on occupational therapy: $1,900.

Part D Costs

Part D premiums vary depending on the plan you choose. The Part D deductible for 2014 is $310 per year (though some plans waive the deductible).

In 2014, the “donut hole” begins $2,850 and ends at $4,550. However, in 2014, while you are in the donut hole, brand-name drugs must be sold to you at a 52.5% discount and generic drugs at a 28% discount.

There are subsidies available to pay for Part D for those with low income (called Extra Help). See Nolo’s article on Extra Help for Part D for eligibility numbers for 2014.

Medigap Plans

The cap on out-of-pocket expenses has increased for 2014 for Plan K and Plan L. The new caps are $4,940 for Plan K and $2,470 for Plan L.