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Medicare fees rise for 2013

By Jennie L. Phipps · Bankrate.com
Monday, November 19, 2012
Posted: 11 am ET

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.

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62 Comments
Jo Ann Sowinski
December 13, 2012 at 6:43 am

I think noone should be allowed to touch what we have payed into a fund for SS. I thought you were not allowed to transfer funds.. And they are doing it by touching the money the people have paid into all these years. They should have to put the money back in with interest. We wouldn't be running out of money if they would leave it alone and drawing interest we would have money for generations to come...

erma g. williams
December 12, 2012 at 7:44 am

Once you have worked all your life, now life is no more full of luster & work is no longer appliable, we are thrown away into the midst of the youth to pay their bills, our senior rates goes sky rocket high and we have paid all our working days & still paying out of the nose where does it end for the retired elder workers & who receive SS benefits. It seem like that we are given hand me down security when most of us seniors have worked even before technology arrived in fulll blown AIDS of no return AIDS = All is done seniors (AIDS) . America should look at the SS System more closely. The same one that is making the law will one day receive the law of enforcement wonder how they will fill, think about it. You may not be AIDS yet but one day you will be. Thanks for reading this little message

Wanda
December 12, 2012 at 12:30 am

I too wondered why the goverment was reducing SS taxes by 2% when the SS program is "going broke." This totally did not make sense. Then I read an article that said the goverment was paying the 2% into the SS program. Not exactly sure how that works, but if that is true, sounds like we just funded another stimulas program.

kenneth c lee
December 06, 2012 at 4:08 pm

another "tax" increase on the "middle class less than $250,000" is the reduction in our FSA accounts from $5,000 down to $2,500. That fellow workers is a TAX HIKE.

JERRY
November 21, 2012 at 2:04 pm

My premium for Medicare Part B in 2010 was $110.50, in 2011 it was $115.40, in 2012 it was $99.90 a reduction of $15.50 from 2011, and now in 2013 it will be $104.90 which is still less than 2010. I can live with that.

Marcia
November 20, 2012 at 4:13 pm

The first thing our President said was that he would not raise our Social Security and Medicare rates. How can we believe in our government when they give us false information like that. I thought Pres. Obama was going to take care of the middle-class people and instead the Medicare rate is going to hiked up another five dollars.

Sondra
November 20, 2012 at 2:33 pm

I agree with Doug! We need to reinstate the am't that people are paying into Social Security. Social Security needs to be reworked. First of all, the government needs to repay (how, I don't know!) what they have 'borrowed' from Social Security. It is an entitlement if one has paid into Soc. Sec. by working 40 qtrs. People paying into the fund now deserve to collect when they are old enough. Why do we keep giving spouses half of their spouse's Soc. Sec. when they have never worked and paid Soc. Sec.? Couldn't we tell physically abled women or men when they turn 50 to "get a job, if you want to collect Soc. Sec."? This would help the fund grow. They need to make a change in the law so that only one wife or husband can collect from a worker's
payment into Soc. Sec. Soc. Securtiy can be 'fixed' and saved.

Doug
November 20, 2012 at 10:53 am

The article is a little misleading. The part B premium is always rounded "up". The $99.90 premium is actually $100.00 when deducted from your Social Security payment. So in 2013 $105.00 will be deducted from your payment and not $104.90.
This is the first year in the history of Social Security that payments into Social Security have been exceeded by the outgoing payments. So why did the politicians lower the Social Security deducted from paychecks by 2%? Stupidity is the first word that comes to mind, or just pandering to get more votes. So lets up the 2% that was dropped and help eliminate the Social Security "Cliff"!

Ken Miller
November 20, 2012 at 10:38 am

Thanks Jennie. It's helpful to see these details. Health care costs are one of the top concerns for my retired family and friends. And a big factor when deciding how much you can spend during your retirement years.

-Ken

Nancy
November 20, 2012 at 10:24 am

After putting in some of my hard earned wages and our goverment "at work" borrowing it, Social Security should not be cut. Our president and congress continue getting their same salary for life while some of us are barely keeping our heads above water. These politicians should only be paid when they are in office and limited to the time they are working for us. They miss votes, get paid for public appearances, write books, campaign, travel all over, appear on TV shows and we are paying those costs plus their salary. Even with my 401K, it is a struggle.
I was a casualty of the crash. Too young to afford to retire and too old to find another job in a difficult market. I had to go on Social Security as soon as I was eligible. My $950 a month doesn't cover my expenses but I can't do without it. Gas, groceries, taxes, have all gone up but my benefit keeps shrinking.
Being a woman and being paid less than my male counterparts hurts me more now than it did when I was working.
Change was for the worst and I'm certainly not moving forward!