Medicare is a social insurance program administered by the United States government that provides health insurance coverage to people who are aged 65 or older. Another requirement for Medicare eligibility is having paid money or taxes into the Medicare system for at least ten years. Seniors below 65 years old can also avail of Medicare benefits if they have a disability or have been diagnosed with permanent kidney failure.
Medicare offers several benefits such as hospital insurance, medical insurance and prescription drug plans. There is another part that deals with a type of insurance plan called Medicare Advantage. The following discusses each benefit in a little more detail:
Part A, or hospital insurance, covers inpatient costs at hospitals, clinics, or ambulatory surgical centers. There are additional requirements involved, but Medicare can also be used to pay for home health care, skilled nursing service and hospice care. Most people don’t have to pay for Part A.
Most people pay monthly premiums for Part B, which is optional if one is still working or currently employed. However, once one becomes eligible for Medicare, the premium becomes more expensive the longer one puts off making enrolling for this benefit. It subsidizes outpatient costs and some services and products not covered by Part A.
Part D involves drug prescription plans for medication not covered in Part B. With these, people can reduce their prescription medicine expenses and protect themselves against higher expenses in the future. Private companies administer the plans, but these are approved and regulated by Medicare.
Part C, or the Medicare Advantage plan, allows Medicare beneficiaries to receive their benefits through private health insurance plans, instead of the original Medicare plan (Parts A and B). These plans are required to offer coverage that is equal or greater than that of the original Medicare program, but they do not have to cover every benefit in the same way. The policies usually cover services that are medically essential and the patient can be charged non-standard deductibles, co-payments, or coinsurance for these services.
Some people perceive the fact that Medicare cannot cover all possible medical expenses of its beneficiaries are perceived as a disadvantage. However, of greater concern is the increasing number of beneficiaries versus the working population, which are basically the source of Medicare funds. It may reach the point where the federal government will no longer be able to support the Medicare program. Some people predict that this situation could come as early as 2018.
Still, the advantages outweigh the disadvantages. It is important to learn as much as you can about Medicare eligibility rules and coverage. In the end, education is the key to making the most of your benefits.
There are a variety of Medicare plans to decide on including the Medicare Advantage Plan. If you require coverage research Medicare eligibility to see if you qualify.