Medicare Part B (Medical Insurance)

What is it? Medicare Part B covers medically necessary doctor’s services, outpatient hospital care, and some other medical services that Part A does not cover. Part B is optional. It is financed through the monthly premiums paid by enrollees and by contributions from the federal government.

What does Part B cover? Part B covers your doctor’s services or outpatient hospital care and
some other services not covered by Part A, such as physical and occupational therapists, and
some home health care. Note: Part B does not cover routine physical exams.
Also covered by Part B are these important services for women:
• Annual mammograms for individuals age 40 or older;
• Pap smears;
• Pneumococcal vaccines;
• Hepatitis B vaccines for high-risk individuals;
• Pelvic and breast cancer screenings every three years for women, or annually for highrisk
women or women with a relevant medical history, exclusive of any Medicare
deductible;
• Colorectal cancer screening;
• Bone density measurements for women at risk for osteoporosis;
• Self-management training for individuals with diabetes.
What does Part B cost? If you decide to participate in Part B, you will be required to pay a Part
B premium each month. As of 2007, beneficiaries with higher incomes ($80,000 and over for
individuals, $160,000 and over for married couples) pay a higher premium based on a sliding
scale. This premium is adjusted based on the cost of living and typically increases each year.

You also have to pay a deductible amount each year before Part B starts to pay. This deductible
amount increases each year by the same percentage as the premium.
There is a penalty for signing up for Medicare Part B after you turn 65. The cost of Part B may
go up 10 percent for each 12-month period that you could have had Part B but did not sign up for
it. You will have to pay this extra 10 percent for the rest of your life. Don’t let the sign-up date
slip by. Note: There are some exceptions if you are still working and covered by an employer
health plan.