You would be surprised to hear how many Medicare eligible clients do not understand how Medicare actually works. With an aging population, and enrollees at the highest levels to date (expected to increase dramatically with the baby boomers entering the system starting in 2011), it is most important to know the ins and outs of the system to ensure coverage in place when you need it.
People age 65 or older are entitled to Medicare Part A (hospital coverage) if they or their spouse are eligible for Social Security payments and have made payroll tax contributions for 10 or more years. Medicare coverage was also expanded to offer coverage for clients under the age of 65 if they have permanent disabilities.
Medicare Part B (physician services) is primarily funded by monthly premiums, adjusted accordingly by your modified adjusted gross income. If you get benefits from Social Security or the Railroad Retirement Board (RRB), in most cases, you will automatically get Part B starting the first day of the month you turn age 65. If you don’t want Part B, make sure to return the card to Medicare, per instructions. If you keep the card, you keep Part B and will pay Part B premiums. Note – if you don’t sign up for Part B when you are first eligible, you may have to pay a late enrollment fee.
Part D will offer you prescription drug coverage. If you choose Original Medicare (as opposed to a Medicare Advantage plan – Part C) and you want drug coverage, you must join a Medicare Prescription Drug Plan. Keep in mind that under Part B, you pay 100% for most prescription drugs, unless you have Part D or other drug coverage.
Please feel free to contact us with any questions, or to discuss your Medicare Supplement needs.
Tags: heath insurance, medicare, medicare supplement, medigap
