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For example, younger persons who are still working probably arenât on Medicare and are still paying into the system by a rate of 6.2% of their annual earnings. Elderly persons on Medicare can use the IRS tax deduction to reduce their tax burden by claiming costs associated with Medicare payments.
Medicare Deductibles by Part. Medicare Part A covers inpatient hospital stays. The deductible per benefit period is $1,216 as of 2014. A benefit period starts when someone is admitted to a hospital or skilled nursing facility and ends once 60 consecutive days elapse without receiving further hospital or skilled nursing care.