UNDERSTANDING PART A COST SHARING

Before you make any decisions about Medicare, start by learning more about the components of cost sharing under Part A.

  • Deductible. The fee you must pay for care before Medicare or a private insurance company begins to cover costs. Example: For each hospital stay under Medicare Part A in 2008, you pay a $1,024 deductible.
  • Co-payment (or co-pay). A fixed fee you pay at the time of service. If your hospital stay lasts longer than 60 days in a benefit period, you pay a substantial copayment for each day between 61 and 150 days.
  • Lifetime Reserve. Part A limits the number of long hospital stays (stays of more than 90 days) it pays for. When you join Part A, you get a "lifetime reserve" of 60 days. Each time you stay in a hospital more than 90 days, you use lifetime reserve days to cover the number of days you stay beyond 90. Once you use up your lifetime reserve, Part A pays only for the first 90 days of any hospital stay, subject to the normal deductibles and co-payments. After 90 days, you pay for your own care.

Tell Us Your Preferences

Share Your Preferences with AARP. Get the information you want. Take AARP's short preference survey to select which topics interest you. Click Here

https://aarphealthcare.com/content/aarphealthcare/home/understanding-health-products/ready-for-medicare/part-a-costs.html