Retirement Blog

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Medicare is raising its 2013 fees. Factor this into your retirement planning. Let's start with the easy stuff that doesn't affect many people living in retirement.

Medicare Part A. Very few people pay a Part A premium. As long as you worked for 40 quarters or 10 years or are married to someone who did, you're entitled to this coverage at no additional charge. Medicare Part A covers inpatient hospital stays, care in a skilled nursing facility, hospice care and some home health care. (Don't be confused. Part A doesn't cover nursing home care.) If you're part of the 1 percent required to pay, the 2013 Part A premium is decreasing to $441, down from $451 in 2012.

Medicare Part A deductible, which everybody is responsible for, is rising 2.4 percent to $1,184. You'll be charged this every time you're admitted to the hospital. Many people have a Medigap insurance policy or are enrolled in a Medicare Advantage insurance plan that pays this fee.

Medicare Part B premium, which is automatically deducted monthly from everyone's Social Security payments, is rising $5 per month from $99.90 to $104.90.  The Medicare Part B deductible will rise to $147 in 2013, from $140. Part B covers doctors' services, outpatient care, medical supplies and preventive services. Medigap and Medicare Advantage plans cover the Part B deductible.

If you have very low income, you may qualify through your state Medicaid program for help paying Part B premiums and the Part A deductible. There is also a Medicare-managed program known as Extra Help that will help you pay Part D prescription drug expenses. Whether you qualify for all or part of this assistance depends on your income.

If your 2011 income was above $85,000 a year ($170,000 filing jointly) you'll be charged more for Part B.  These premium adjustments range from $42 to $230.80 per month, depending on how much you make. If your income has changed since you paid your 2011 taxes, you can ask the government to recalculate.