Medicare Rates Increasing

Premiums for Medicare Part B coverage-generally covering physicians’ services-will rise in 2004 from the current $58.70 a month to $66.60 a month. Part B coverage is voluntary, although most federal retirees hitting age 65 and becoming eligible for it take it, even if they continue their Federal Employees Health Benefits program coverage. The annual Part B deductible will remain $100, but the Medicare coinsurance amounts for hospital stays are rising by several dollars, to $876 for a stay of 1-60 days, $219 per day for days 61-90 of a hospital stay and $438 per day for days 91-150; the coinsurance for care in a skilled nursing facility also is rising, to $109.50 per day for days 21 through 100 each benefit period. In most cases, where a retiree has both Medicare and FEHB, Medicare pays first and FEHB acts as a secondary payer.