Medicare 2013
Medicare Parts A and B cover hospitalization and doctor visits for most people age 65 and older. A supplemental plan called Medigap covers the 20% of costs not covered by Part B. For 2012, the typical Part B monthly premium is $100, down from $115 in 2011. Part B premiums ranged from $40 to $220 a month (those with incomes > $214K). Starting in 2013, the Medicare payroll tax will increase from $1.45% to $2.35 on incomes above $200,000 for individuals ($250K for married couples). Under the Affordable Care Act, Medicare benefits increased and now include the following: free annual checkups and preventive care and large discounts on prescription drugs for Medicare recipients who are part of the “donut hole.”