You’ve heard about Medicare Part A. But what is Medicare Part B, and what does it cover? Part B comprises the other part of Original Medicare. Through this component, you can get covered for outpatient services. Having both Part A and Part B helps you “round out” your health care coverage, as you’ll be covered for both inpatient and outpatient care.
Medicare Part B coverage has monthly premiums that all beneficiaries must pay. The total amount of your premium depends on your income for the two years prior to enrolling in Medicare. Continue reading to learn more about Part B coverage.
Unlike Part A, Medicare Part B has premiums that you must pay monthly in exchange for coverage. Premiums are calculated using your modified adjusted gross income (MAGI) for the two years immediately prior to enrolling.
The standard premium amount for 2023 is $164.90. This applies to anyone who filed an individual tax return of $97,000 or less.
If you filed a tax return for more than this amount, your premium will be higher.
The 2023 Part B premiums are listed below:
- Income between $97,000 and $123,000: $230.80
- Income between $123,000 and $153,000: $329.70
- Income between $153,000 and $183,000: $428.60
- Income between $183,000 and $500,000: $527.50
- Income higher than $500,000: $560.50
Medicare Part B also has an annual deductible that you must meet before insurance kicks in. For 2023, the deductible is $226. Once you pay this amount, you must usually pay 20 percent of the fees for covered services.
Part B insurance covers a variety of outpatient services, including medically necessary services and durable medical supplies. It also helps cover preventive services, which are pre-treatments to help you avoid illnesses. It may also include early detection services.
Do you need coverage for prescription drugs? Part B only covers prescriptions administered by your doctor. If you need more coverage, you should consider signing up for Part D.