Turning 65 today is good news and bad news. The bad news: is
you’re getting up there. But 65 in this day and age is the
new 45. The good news is: you are now eligible for Medicare.
What a relief! So congratulations, you are about to join
over 47 million people on Medicare today. Although we have
heard the word ‘Medicare’ time and time again, no one really
knows what it provides.
To start, it provides Medical and Hospital coverage. We
turned to Joseph Battaglia to educate us on Medicare. Joseph
is the President of Senior Services of North America. He
assists thousands of Medicare Beneficiaries across the
country with their health insurance options. Joseph is a
featured speaker on this topic with many associations and
holds seminars to educate retirees and seniors as well as
insurance agents. He is highly regarded in the insurance
industry for his expertise in the senior marketplace and has
mapped out Medicare for our LATF readers.
“In today’s world, it is not unusual to be living on limited
income and with the spiraling costs of healthcare,
protecting your health is a major concern. Inadequate health
insurance could be disastrous both financially and
emotionally,” said Joseph Battaglia, President of Senior
Services of North America.
Joseph helped to navigate us through the different parts of
Medicare, which he refers to as A, B, C and D.
WHAT IS “PART A” & HOW MUCH DOES IT COST?
Part A covers your hospitals, hospice and skilled nursing
facilities. If you have worked 10 years, there is no premium
for Part A. However, that does not mean there are no costs
when you go into the hospital. For example currently if you
are in the hospital from 1-60 days there is a $1216
deductible which increases as your stay increases.
WHAT IS “PART B” & HOW MUCH DOES IT COST:
Part B covers medically necessary doctors’ services,
out-patient care, home health services, durable medical
equipment as well as other preventive services. The premium
for this coverage depends on your income. The standard
monthly premium amount is $104.90. Now that you have paid
the premium, that does not mean there are no other costs
involved. For example, there is a one-time annual deductible
of $147 and a 20% co-insurance for all costs after the
annual deductible. Considering the high costs of medical
procedures, the 20% co-insurance can be costly.
So now you are probably wondering, “How do I cap my medical
and hospital costs and also include a prescription drug
plan?”
Coming to the healthcare rescue is “PART C” and “PART D,” as
well as a Medicare Supplement Plan.
“PART C” ALSO KNOWN AS “MEDICARE ADVANTAGE PLANS”
A Medicare Advantage Plan is in addition to your Original
Medicare Part A & B and there are plans that even
include “Part D” Prescription Drug Coverage. This
wrap-around coverage enhances your Medicare coverage and
eliminates or reduces many of your out-of-pocket expenses.
With Medicare Advantage Plans, you may pay a monthly premium
and small co-payments when you utilize the plan services.
There are different plan types such as HMO’s or PPO’s
depending on where you live. These plans are offered by
private insurance companies that have a contract with
Medicare and are affordable. Millions of seniors take
advantage of these plans yearly.
WHAT IS “PART D”?
“Part D” is Prescription Drug Coverage. If you enroll in a
Medicare Advantage Plan, most include a “Part D” Plan. If
you do not enroll in a Medicare Advantage Plan and choose to
stay on only Original Medicare, then you may enroll in a
“Part D” Prescription Drug Plan. Each plan can vary in costs
and coverage.
Now that you know the A, B, C’s of Medicare. What exactly is
a Medicare Supplement Plan?
Medicare Supplement Plans are also health insurance options
offered by private insurance carriers that provide
comprehensive coverage to supplement Medicare. These plans
vary in costs depending on the plan that is chosen.
Typically a person chooses this type of plan when they
prefer to pay a higher monthly premium and eliminate or
reduce co-payments. So, if a higher monthly premium is not a
concern to you, this may be a good option to give you piece
of mind. With this type of coverage, you will need to get a
stand-alone Part D plan for your prescriptions.
This is a basic summary on the parts of Medicare and the
coverage for each. Like millions of Medicare beneficiaries,
you may be looking for additional coverage that Medicare
does not cover. Reviewing your “Medicare and You” Handbook
will give you more detailed information.
You may also seek out help from a professional, licensed
health insurance agent. There may be Medicare Advantage
Plans in your area with a zero monthly or low cost premium.
Whether you are turning 65 and new to Medicare or already
have a Medicare Advantage Plan, it is wise to review your
coverage annually to ensure that it is the most suitable,
comprehensive and affordable plan for you. Knowing your
options can save you hundreds or even thousands of dollars
each year on your healthcare expenses. When looking at your
options, it is important to make sure that your doctors,
hospitals and prescriptions are covered by a plan you have
interest in. Make a list of your doctors, hospitals and
prescription drugs and compare it to the plans available to
find the most comprehensive, suitable and affordable plan to
best cover your needs.
Did you know…..
OCTOBER 15th THRU DECEMBER 7th IS KNOWN AS THE ANNUAL
ENROLLMENT PERIOD (AEP). THIS IS THE TIME OF YEAR THAT YOU
SHOULD REVIEW AND COMPARE YOUR PRESENT COVERAGE TO THE NEW
OPTIONS THAT MAY BE AVAILABLE EACH YEAR AND MAKE ANY CHANGES
TO YOUR PRESENT PLAN. ALL CHANGES HAVE TO BE MADE DURING
THIS PERIOD AND ARE EFFECTIVE FOR JANUARY 1st.