Are you turning 65 soon?
Then it’s time to get yourself up to speed with Medicare, the most important health insurance program in the United States.
What is Medicare?
Medicare is an initiative of the federal government targeted at people aged 65 and above. It is administered by the Centers for Medicare & Medicaid Services (CMS) department of the U.S. Department of Health & Human Services (HHS).
Like Social Security, Medicare is an entitlement program. That means all U.S. citizens have the right to enroll in this program as long as they pay their taxes, work at a job and follow the law of the land.
Medicare Plans
There are 4 parts to the Medicare program. The Original Medicare comprises of Part A and Part B, while Part C or Medicare Advantage, is essentially a private health insurance program approved by Medicare. Part D of Medicare covers prescription drugs only.
Here’s a quick overview of the 4 parts.
Medicare Part A
Medicare Part A is the original Medicare program that covers hospital insurance. It covers (in part or in full) the cost of hospital care, home health care services, nursing care facility and hospice care.
Medicare beneficiaries don’t need to pay a monthly premium to be eligible for this program. They will, however, need to have worked at least 10 years and paid taxes to become eligible.
Medicare Part B
Medicare Part B is another original Medicare program that covers medical insurance. The benefits under this program cover non-hospital medical expenses such as X-rays, blood tests, diabetic screenings, visits to the doctors’ office, outpatient hospital care and medical supplies.
Beneficiaries are required to pay a monthly premium to be eligible for this program. Low income beneficiaries need not worry as their premiums are covered by Medicaid, another federal government program.
Medicare Part C – Also called as Medicare Advantage. This is an alternative to the federal government managed Medicare program wherein private insurance companies cover the cost of Medicare approved services. Medicare Advantage Plans may have different prices, restrictions, and benefits compared to the original Medicare program. Benefits may vary from one private insurer to another.
Medicare Part D – Part D is prescription drug coverage or a prescription drug plan administered by private insurance companies. The monthly premium varies from one insurer to another.
Medical Supplement Insurance (Medigap) – Medigap or Medicare Supplement Insurance covers health care costs that are not covered by the Original Medicare program. Specifically, Medigap covers deductibles, coinsurance and copayments. Medigap policies are sold by private insurance companies.
Medicare Eligibility
Retirees may enroll in Medicare during a 7-month window which begins exactly 3 months before turning 65.
If you want the coverage to start the same month as you turn 65, then you should sign up at the start of the 7-month window. If you enroll too late, you will be levied a late enrollment penalty.
Visit Medicare.gov for all the details on Medicare Eligibility.
You may also visit www.federalnationalfunding.com for additional program information. Should you have specific questions for our financial advisors at Federal National Funding, call 1-800-774-3056 for comprehensive information on Medicare and help with other federal, state, financial and insurance programs.
