Hospitalization insurance helps to pay for the costs of inpatient care, i.e. when you stay overnight at the hospital. It applies to hospitals, nursing homes, home health care, and hospice care.

For each benefit period Medicare pays all covered costs except the Medicare Part A deductible (2003 = $840) during the first 60 days and coinsurance amounts for hospital stays that last beyond 60 days and no more than 150 days.

For each benefit period you pay:

  • A total of $840 for a hospital stay of 1-60 days.
  • $210 per day for days 61-90 of a hospital stay.
  • $420 per day for days 91-150 of a hospital stay (Reserve Days).
  • All costs for each day beyond 150 days.