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Original Medicare

2008 Medicare Rates

Each year Medicare sets how much you pay for its premiums, deductibles, and copayments. Here are the rates for 2008:

Part A Premiums
Most people do not pay for Part A because they paid Medicare taxes for 40+ quarters while working. Those with 30 to 39 quarters of covered employment can buy Part A coverage. It costs $233 a month. Those who have less than 30 quarters of covered employment will pay $423.

Part B Premiums
Most people on Medicare will pay $96.40 a month for Part B in 2008. That's up $2.90 from 2007. Higher-income people will pay even more.

2006 Tax Return Income (Individual) 2006 Joint Tax Return Income (Married Couples) 2008 Monthly Part B Premium
Up to $82,000 Up to $164,000 $96.40
$82,001 to $102,000 $164,001 to $204,000 $122.20
$102,001 to $153,000 $204,001 to $306,000 $160.90
$153,001 to $205,000 $306,001 to $ $410,000 $199.70
Over $ 205,000 Over $410,000 $238.40

If you're on Medicare before January 1, 2008, you'll be told at the end of 2007 about the 2008 rates, as well as any related changes in your Social Security benefits. If you enroll after then and must pay the higher premium, you'll hear shortly after enrolling.

Deductibles and Copayments

Part A Deductible: The 2008 Part A deductible is $1,024 per illness, up $32 from 2007.

Part B Deductible: The 2008 Part B deductible is $135, up $4 from 2007.

Part A Copayments: The Part A deductible covers the first 60 days of a Medicare-covered hospital stay. Then you pay $256 a day for days 61 through 90. After the 90th day, your co-pay for lifetime reserve days is $512 a day.

For more information call Medicare at 1-800-633-4227 or visit www.medicare.gov on the Web.

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