Medicare is a compromise between what type of health care an aging senior with a medical condition can afford and the risks of getting that care when it is needed. Medicare Part D prescription drug coverage helps reduce the cost of prescription drugs. Medicare Part A insurance protects Medicare benefits from loss or suspension due to bankruptcy. Medicare Part B insurance covers emergency room visits, outpatient surgery, and certain inpatient hospital care. The Medicare Plan N has proven to be the most effective form of insurance for seniors.
Medicare Part A and B have different rules for different age groups. Seniors frequently move between plans. This could mean that they receive a Medicare Advantage for a year and then switch to another plan. This could result in a significant Medicare Part A premium increase. As a result of this problem, some seniors chose to get a supplemental Medigap policy instead of changing plans. This would avoid a significant increase in their Medicare premiums.
Medicare Part A coverage is based on a sliding scale called the Medicare Eligibility Amount (MED). The higher the medical plan options, the higher the monthly Medicare Eligibility Amount. For seniors who qualify for Medicare at least once, their Medicare Eligibility Amount is based on their income. It is the amount that must be paid monthly, along with any applicable fees, that determines their monthly out-of-pocket medical expenses.
While there are several additional Medicare supplement plan options for seniors who qualify for Medicare regardless of their monthly Eligibility Amount, most often it is easier to deal with a Medicare supplement plan that offers Medicare Advantage Plans or Medicare Part A and B as a Medicare supplement than it is to navigate the confusing Medicare plans.
Most Medicare coverage comes from three parts: Parts A, B, and C. Parts A, B, and C do not cover the costs of specific services such as surgical rooms, laser procedures, and hospital stays; however, they do provide coverage for items such as vision care, durable medical equipment, home health care, and some prescription drugs.
There are eleven different Parts A, which cover routine health care; Parts B, which cover durable medical equipment; Parts C, which provide coverage for services prescribed by physicians; and Part D, which cover certain coverage related to medications. The Medicare Supplement Insurance Plan (SPIP) also provides additional benefits unique to the Medicare plan N.
Unlike Parts A and B, Parts C and D do not cover routine medical care or certain prescribed medications. The Medicare Advantage Plans offered by private insurance companies are standardized but diverse. They often cover all the services provided by the Medicare program, but with additional benefits; these additional benefits are typically not available with the Medicare Supplement Insurance Plans.
As with most other types of insurance, it is possible to enroll in Medicare Parts A and B up to the point of turning 65. If you do not qualify for the full amount of coverage provided by the program, you can enroll in parts A and C, at any time. Medicare Parts A and C offer coverage for an inpatient hospital stay, physician visits, and certain outpatient care.
Medicare Parts A and B also provide coverage for disability income, emergency room care, and health care costs related to professional services received abroad. If you become disabled or are eligible for a Medicare supplement policy, you may also want to consider enrolling in Medicare part A or B if you are older than 65. This will cost you extra.
Several other items affect your Medicare Part A and Part B premiums. Excess charges are additional fees that you pay for services received for the first time. They are included in the annual fee for all members of the Medicare program.
Your Medigap Insurance Plan premium will be affected by your excess charges, and also by the Medigap plan choice, you select. If you change your Medicare Part A enrollment from a point-of-service or prior enrollment to a point-of-service or prior enrollment option, your Medigap insurance premium may increase.