MEDICARE 2006 PREMIUM,

DEDUCTIBLES AND COINSURANCE

(This information is only valid for 2006)

MEDICARE PART A - HOSPITAL INSURANCE

Part A Premium* Many beneficiaries do not have to pay a premium for Part A, however, there are premium penalties for late enrollment.

$0 - 40 quarters of Medicare-covered employment (10 years)

$216/month - 30-39 quarters but not more than 40 quarters of Medicare

covered employment

$393/month - Less than 30 quarters of Medicare-covered employment

Deductibles and Coinsurances

Inpatient Hospital $952 deductible (first 60 days)

$238/day coinsurance (61st through 90th day)

$476/day coinsurance (91st through 150th day) for each “Lifetime Reserve” day used

$$$$ All costs for each day beyond 150 days

Skilled Nursing $0 deductible (first 20 days)

Facility $119/day coinsurance (21st through 100th day)

Home Health $0 deductible (except for Durable Medical

Care Equipment, which is subject to $110 deductible

and 20 percent coinsurance)

Blood

The Deductible you pay covers the first 3 pints used (blood paid for or replaced under Part A of Medicare during the calendar year does not have to be paid for or replaced under Part B).

MEDICARE PART B - MEDICAL INSURANCE

Part B Premium

$88.50* per month (*premium penalty may occur for late enrollment).

Annual Deductible

$124 per calendar year

Coinsurance

Most services are paid at 80 percent of the Medicare allowable, after the annual deductible has been met leaving a 20 percent coinsurance. Certain Part B services, such as diagnostic lab tests and flu and pneumococcal (pneumonia) vaccines are paid at 100 percent of the Medicare approved amount.

Blood

Deductible is the cost for the first 3 pints used (blood paid for or replaced

under Part B of Medicare during the calendar year does not have to be paid for or replaced under Part A).

Part D Premium

The average Part D monthly premium will be $32*. (*premium penalty may occur for late enrollment).

Part D Deductible

$250 per calendar year.

Coinsurance

25 percent of the Prescription Drug expense of the next $2000, after deductible is paid; 100% of the next $2850. After $3600 in out of pocket costs have been met, Medicare Beneficiary will pay 5% of Prescription Drug Costs for remainder of year.

If you have questions about your eligibility for Medicare Part A or Part B or if you want to apply for Medicare, call the Social Security Administration. The toll-free telephone number is 1-800-772-1213.

Every attempt was made to have this information as accurate as possible.

Please refer to your Medicare and You 2004 handbook for any questions or

call 1-800-MEDICARE (1-800-633-4227).

1/26/06