Medicare Part A

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Medicare Part A is commonly known as Original Medicare or hospitalization insurance. This mostly covers the cost of your time in the hospital (inpatient care), skilled nursing facility care, hospice care, home health care, and more. 

Medicare Part A is often referred to as “hospital insurance” since it covers your care while in a hospital. It will also cover some care in nursing facilities, assisted living, home health care, hospice and more.

• Skilled Nursing Facility Care
• Inpatient Care in Hospital
• Nursing Home Care (as long as custodial care is not the only care you need or long-term care)
• Hospice Care
• Home Health Care

Typically, there is no cost associated with Medicare Part A. As long as you (or your spouse) have worked and paid taxes for at least 10 years (40 quarters), you will be entitled to Part A at no cost. Often times, you will hear people refer to this also as “premium-free Part A”.

An easy rule of thumb is if you are eligible for Social Security benefits, then you should be eligible for Medicare Part A at no cost. If you have to buy Part A and paid taxes for at least 30-39 quarters, the standard Part A premium would be $259 in 2021. If you worked & paid taxes for less than 30 quarters, the standard Part A premium would be $471 in 2021.⁠

You usually don’t pay a monthly premium for Medicare Part A (hospital insurance) coverage if you or your spouse paid Medicare taxes while working. This is sometimes called “premium-free Part A.”

If you buy Part A, you’ll pay up to $471 each month in 2021.

Most people get premium-free Part A. You can get premium-free Part A at 65 if:

• You already get retirement benefits from Social Security or the Railroad Retirement Board
• You are eligible to get Social Security or Railroad benefits, but have not filed for them yet
• You or your spouse had Medicare-covered government employment.

Any expenses you incur while an inpatient in the hospital would fall under Part A of Medicare. You will have to pay a $1,484 annual deductible in 2021 before your Medicare Part A hospitalization coverage begins. Additionally, if applicable, you will be responsible for some cost-sharing for extensive hospital days. See the chart below for the exact breakdown in costs: