Medicare Premiums, Deductibles, and Copays Change for 2014
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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:
|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.
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.