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Medicare Basics, Part A and Part B

(Original Medicare)

Medicare, begun in 1965 under the Social Security Administration, is our country’s health insurance program for people over 65.


Social Security enrolls you in Original Medicare, Part A and Part B. 

Part A

(Hospital Insurance)

A helps pay for inpatient care in a hospital or skilled nursing facility.   

Part A also pays for some hospice and home health care.  


There is a $1,484 (for 2021) deductible per benefit period, meaning if you return to the hospital after being out for 60 days, a new period begins and $1,484 deductible, if you do not have a private insurance plan.

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For most people there is no monthly premium for Part A because either you or your spouse have worked over 10 years and paid payroll taxes.

Part B

(Medical Insurance) B helps pay for outpatient services from doctors, lab work, diagnostic testing, preventive services, outpatient surgery, ambulance, cancer therapy, etc.

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There is a monthly premium for Part B (avg $148.00 in 2021) and an annual deductible ($203.00 in 2021) which is set by Social Security, both change each year. 


Now depending on your income your monthly premium could be more and your friendly IRS office figures it all out. 

There’s this thing called Modified Adjusted Gross Income (MAGI), and then Income Related Monthly Adjustment Amounts (IRMAA, I dated a girl named Irmaa in high school)

BUT, don’t worry, SIBG will work with you on all of this including how to file the right paperwork with the IRS to dispute MAGI because after all you are now retired and you do not earn what you did when you were working. 

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Part A and Part B cover approximately 80% of the cost, meaning 20% is your responsibility. 

That 20% is where Medicare Supplement (Medigap) or Medicare Advantage private health Insurance plans come into play.  And let’s not forget Prescription drugs, Part D, which is coverage that is also provided by private health insurance carriers.  We’ll get into that later

So, based on the fact it’s free to work with us please give us a call

Jim Mauro (301) 767-7239



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