New Medicare Rates for 2006

Meanwhile, Medicare has announced the new premium and copayment rates for 2006 for enrollees in Part A (hospital insurance) and Part B (medical insurance). The Part B premium will be $88.50 per month and the annual deductible $124. Most people do not pay a monthly Part A premium because they or a spouse has 40 or more quarters of Medicare-covered employment. The Part A premium will be $216 for people having 30-39 quarters of Medicare-covered employment and $393 per month for people who are not otherwise eligible for premium-free hospital insurance and have less than 30 quarters of Medicare-covered employment. For each benefit period Medicare pays all covered costs except the Medicare Part A deductible, which in 2006 will be $952.