For Medicare, 2007 is a year of sweeping change. For the first time in the program's 40-year history, Medicare Part B premiums, covering physician services and outpatient care, will be based on income instead of a flat-rate premium. The chart at right shows the different Part B premium rates for 2007. The 2007 deductible charge - which recipients pay before Medicare covers services - is $131.

If you have Medicare Part A (inpatient coverage) and worked more than 10 years in the U.S., you still won't pay a premium in 2007.

If you worked between 7 1/2 and 10 years, you can buy Medicare Part A coverage for $226 per month; $410 per month if your work history is less.

In 2007, you will have a Medicare Part A deductible of $992 for inpatient hospital care.

Like last year, you will not have to pay coinsurance for the first 60 days of inpatient hospital care. You will have to pay a $248 daily co-insurance for days 61-90.

Participants will pay a daily coinsurance of $496 for Lifetime Reserve Days, also known as reserve days. This once-in-a-lifetime, non-renewable Medicare benefit is available for up to 60 days, following hospital stays of more than 90 days.

There is still no coinsurance requirement for the first 20 days you stay in a skilled nursing facility. The daily coinsurance rate is $124 for days 21 to 100.

Supplemental insurance, such as retiree health coverage and Medigap plans, can cover out-of-pocket costs. Medicare Savings Programs for people with low incomes can also help cover these costs, if you qualify.

To keep abreast of Medicare changes, read about supplementing coverage with a Medigap plan or find out how to qualify for a Medicare Savings Program, visit Medicare Interactive at www.medicareinteractive.org/teachers, provided by NYSUT and one of its national affiliates, the American Federation of Teachers.

The Medicare Rights Center is the nation's largest independent source of health care information and assistance.