What is Medicare?
Medicare is the Federal Government’s mandated health insurance plan for just about everyone over age 65.
If you are turning age 65 then you must go on Medicare unless you have “credible coverage”, which is also known as employer coverage.
Who qualifies for Medicare?
A person who reaches age 65 is qualified to received Medicare.
A person under age 65 who has received Social Security Disability Income (SSDI) for 24 months or more is qualified to go on Medicare. Please do not confuse this with people who are on Social Security Income (SSI). SSI is not SSDI even if you have a disability… it must be SSDI to qualify.
What is Part A?
Think of Part A Medicare as hospital coverage. Part A pays for your Hospital stay…not the medical care you receive from the Doctors but the hospital itself.
How much does Part A cost?
If you worked a total of 10 years of your life, even if those 10 years where not consecutive, then Part A if free… you will pay nothing per month for Part A.
If you did not work 10 years, then it will cost you money every month. That cost is different for everyone.
What is Part B?
Think of Part B as medical coverage. Part B pays for your medical care such as your Doctors and Nurses.
Medicare Part B will cover 80% of your medical bills and you must cover the 20% on your own (most people purchase a supplement or advantage plan to help solve this problem).
How much does Part B cost?
This changes from year-to-year as the cost typically goes up a little bit each year. In 2021, the cost is $148.50 per month.
What is Part D?
Part D is the Prescription Drug Plan. Everyone who has Medicare must have a drug plan even if they do not take drugs. The cost of the drug plan varies depending on your prescription drugs.
If Medicare does not cover everything then what are my options?
Medicare has two primary options available… Medicare Supplements and Medicare Advantage.
What is a Medicare Supplement?
A Medicare Supplement is an insurance policy available for purchase from an insurance company. Their are several supplements available and the benefits are different for each, but if you are looking to pay the 20% that Part B does not cover then look into a Plan G Supplement. There is a monthly premium for supplements which depends on the person who is buying.
What Is Medicare Advantage?
Medicare Advantage is offered by insurance companies to manage your care on behalf of Medicare. Insurance companies take over your Part A and Part B and most of the time Part D and this all becomes your advantage plan. Advantage plans can have a monthly premium or they can have no monthly premium. However, please keep in mind that nothing is free and there is always cost associated with healthcare.