Medicare Part A – Hospital Insurance
Medicare Part A is primarily coverage for hospital care when you’re admitted into the hospital as an inpatient. In order for your hospital stay to fall under Part A, your the hospital must accept Medicare, which the vast majority of hospitals do. We cover more in the video below:
What Does Medicare Part A Cover?
Medicare Part A covers the following:
- Inpatient care in a Hospital
- Skilled nursing facility care
- Home health care
- Nursing home care
How Much Does Medicare Part A Cost Per Month?
As long as you’ve worked 40 quarters (10 years) as a US citizen and paid into FICA through your payroll taxes, your Medicare Part A premium will be $0 per month. Sometimes you’ll hear that “Part A is FREE”, but don’t be confused, you’ve been paying into Part A your whole working career.
Medicare Part A – Cost Sharing 
You pay this in 2022:
- $1,556 deductible for each benefit period.
- Days 1–60: $0 co-pay
- Days 61–90: $389 co-pay per day
- Days 91 and beyond:$778 co-pay per each “lifetime reserve day” after day 90 for each benefit period (up to 60 days over your lifetime).
- Beyond lifetime reserve days: All costs
When Do You Get Medicare Part A?
If you’re taking your Social Security benefits, you’ll be automatically enrolled in Medicare Part A when you turn age 65.
If you’re not taking Social Security, you’ll have to sign up for Medicare Part A and Part B using one of the methods we discuss on this page: Applying For Medicare.
For those who are continuing to work and have creditable health coverage through their employer health plan, you may or may not need to sign up for Part A.
- If you work for a small employer (under 20 employees), Medicare will be your PRIMARY insurance, so you will have to sign up for Part A and Part B.
- If you work for a large employer (over 20 employees), Medicare will be your SECONDARY insurance, so you likely DO NOT need to sign up for Part A and Part B.
Problems With Taking Medicare Part A
A common problem we see, is that many people will take Part A when turning age 65 even though they are still working. The issue is that when you take Medicare Part A, you’re no longer eligible to make tax-free contributions to your Health Savings Account (HSA).
If you are unsure whether you need Medicare Part A or not, ask your HR department or give us a call and we’ll do our best to guide you in the right direction.
Next up is Medicare Part B – Medical Insurance.
Medicare sure can be confusing, huh? We made a video that goes through Medicare step-by-step. This is the easiest way to learn. Check it out!