2022 AFBA Financial Planning Guide

not cover custodial care which are services that do not require medical skill such as assisting you with care involving dressing, walking, or eating. c. Home Health Services. This part of the program helps pay for home health care visits if you are confined to home and are based on plans set by your doctor. This includes supplies, part–time nursing care, use of medical appliances, and various therapy services including physical, speech, and occupational therapy. A 20% copayment applies to covered durable medical equipment (e.g. wheelchairs, hospital beds). As with post–hospital extended care, home health services do not cover custodial care. d. Hospice Care. Hospice programs provide support for terminally ill people. Medicare will help to pay for these costs and the benefit period for this coverage may be extended. Part B — Medical Insurance. You become eligible for Medicare Part B at the same time you are eligible for Part A. Participation in Medicare Part B is voluntary and requires the payment of a monthly premium. In 2022, the standard monthly premium charge is $170.10. However, enrollees with higher incomes on their federal tax return (Modified Adjusted Gross Income), will pay a higher premium as shown in the table below. The Part B deductible for 2022 is $233. If you do not enroll for Part B during your Initial Enrollment Period, each year you are given another chance to sign up during the general enrollment period from January 1 through March 31. Your coverage will then begin the following July. However, your monthly premium will be increased by 10% for each 12 month period that you were eligible but did not enroll.

starting the first day of the month you turn 65. If you are not getting benefits from Social Security at least 4 months before you turn 65, you will need to enroll for Medicare at www.ssa.gov/benefits/medicare . Detailed information on Medicare can be found at www.medicare.gov . It should be noted that Medicare and Medicaid are two different programs. The Medicare program is run by the federal government while the Medicaid program operates at the state level. The focus of Medicaid is health care support for low income individuals and the definitions and rules vary from state to state. Part A — Hospital Insurance. Most people should enroll in Part A when they turn 65 even if they have health insurance from an employer. Medicare will help pay the bills when you are hospitalized in a qualifying institution. Support is also provided for skilled nursing care and other services after hospitalization. The specific coverages include: a. Hospitalization. This part of the program helps with the hospital bills for up to 90 days per benefit period. After payment of a deductible, the program covers specific services for the first 60 days of hospitalization. For the remaining 30 days of hospitalization, the program pays for certain services but requires you to pay a daily coinsurance amount. For 2022, the deductible is $1,556 and the daily coinsurance amount is $389 for days 61- 90. A benefit period starts when you enter the hospital and ends when you have been out of the hospital for at least 60 days. If you are out for at least 60 days and then reenter the hospital, a new benefit period starts and you must pay a new deductible. If your illness requires hospitalization for more then 90 days, you may use some of your “reserve days.” Reserve days are days of hospitalization beyond the normal 90 during which Medicare will pay certain expenses less a daily coinsurance amount of $778. Each individual is provided 60 reserve days in a lifetime. Hospital services typically covered include room and board, nursing services, drugs, supplies, and diagnostic services. b. Skilled Nursing Facility Care. This part of the program helps pay bills (for up to 100 days) that Medicare considers reasonable for extended, post–hospital care in a skilled nursing facility. Services typically covered include room and board, nursing care, physical and speech therapy, medical social services, drugs, and supplies for your care and treatment. The program does

PART B — Monthly Premiums

Filing Status & Income Range


Individual Joint $91,000 or below $182,000 or below $170.10 $91,001 – 114,000 $182,001 – 228,000 238.10 $114,001 – 142,000 $228,001 – 284,000 340.20 $142,001 – 170,000 $284,001 – 340,000 442.30 $170,001 – 500,000 $340,001 – 749,999 544.30 Over $500,000 Over $750,000 578.30


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