Medicare Part B: Doctor Costs and Lab Tests

If Medicare Part B pays for outpatient medical care, such as doctor's visits, some laboratory tests, and some medical equipment. (Hospital stays are covered under Medicare Part A.)

Medicare Benefits: How Do I Get Medicare Part B?

If you qualify to get Medicare Part A, you're qualified for Medicare Part B as well.  If you're 65 and receive Social Security checks, you're automatically enrolled.

If you are 65 or older but don't get Social Security payments, you can still apply. Call Social Security at 1-800-772-1213, visit the web site at http://www.socialsecurity.gov/, or apply at your local Social Security office.

How Much Does Medicare Part B Cost?

First, you have to pay a monthly fee (called a premium) which is usually taken out of your Social Security payment. In 2008, this fee is $96.40 per month for most people.

But, if you have a higher than average personal income (over $82,000) or household income ($164,000), you will have to pay a higher monthly premium for Medicare Part B. The exact monthly fee will vary depending on your income, ranging from $122.20 to a maximum of $238.40.

Next, there’s a yearly deductible. In 2008, the year deductible is $135. After you pay $135 yourself, your benefits kick in. After that, Medicare will pay 80% of the cost of most Part B services, and you (or your Medigap policy) pay the other 20%.

Finally, it’s important to know that there's a penalty for signing up late for Part B. If you don't sign up for Medicare Part B when you first become eligible (and you don’t have comparable coverage from an employer), your monthly fee may be higher than $96.40.

Medicare Coverage: What Does Medicare Part B Cover?

• Medical and other services. Medicare Part B pays 80% of most doctor's services, outpatient treatments, and durable medical equipment (like oxygen or wheelchairs.) You pay the other 20%. Medicare also pays for 50% of most mental health care costs.
  
• Laboratory and radiology services. This includes blood tests, X-rays, and other tests.
• Outpatient hospital services. Medicare Part B covers some of these fees. You also have to pay a copayment. The exact amount varies depending on the service.
• Home health care. Medicare Part B pays for nurses and some therapists to provide occasional or part-time services in your home. As long as the provider is certified by Medicare, you pay nothing -- except for 20% of the charges for some medical equipment, such as wheelchairs and walkers.
• Preventive services. Medicare Part B helps pay for a number of tests, screenings, vaccinations, and a one-time physical exam to help you stay healthy. Some of these services are free; but for most you will pay 20% of the cost.
• Blood for transfusions. After the first three pints, Medicare pays 80% of the costs for blood you need as an outpatient.