Medicare, the federal health insurance program for those 65 and older, has two main parts:
* Part A provides coverage for hospital stays. It is free to anyone in the 65+ age group who worked at least 10 years in a job where Medicare taxes were paid, and for the spouses of such workers. People who haven’t worked enough to qualify for free coverage can buy Part A, at rates that now go up to $423 a month.
With Part A, you pay a deductible: $1,024 in 2008. Once that has been paid, most hospital costs are covered by Medicare.
* Part B covers doctors’ visits, outpatient treatment, and other medical services. Medicare enrollees pay for Part B coverage; for most people the fee in 2008 is $96.40 per person per month.
Upper-income seniors pay more. That includes single taxpayers with at least $82,000 of annual income and married couples with income over $164,000. In 2008, the highest Part B fee is $238.40 per person per month, for seniors with income over $205,000 (on a single tax return for 2006) or $410,000 (on a joint return).
