Medicare Explained
Medicare is:
A government health insurance program available for everyone 65 and over and some younger individuals with disabilities or specific diseases. This health insurance is intended to assist, but not entirely pay for the health care costs of beneficiaries. In fact, Original Medicare is generally an 80/20 co-insurance. The government pays 80% and you the beneficiary pay 20%. Unfortunately, 20% of a hospital stay can be very expensive. Medicare is optional, but delayed enrollment in all or part will cause government mandated penalties that can be a burden the rest of your life. The longer you wait to enroll, the larger or longer the penalty will be.
Medicare is divided into Part A, Part B, Part C, and Part D.
Medicare Part A
Part A covers hospital visits. Most beneficiaries receive Medicare Part A without paying a premium. So for most people there is no reason to delay signing up for Medicare Part A when you turn 65, even if you continue to work and have employer health coverage. Like other parts of Medicare, there is a penalty for delayed enrollment, and exceptions for qualified circumstances. If you want help signing up for Part A or have questions about when is the best time to sign up, contact Scoresby Medicare Advisors today.
Medicare Part B
Part B covers doctors visits and some drugs given in a hospital setting. Part B is optional, but if you delay enrolling after age 65, you may be subject to a penalty for the rest of your life. Exceptions to this penalty exist for qualified employer coverage. There are a lot of questions about Medicare Part B such as: Do I need Part B if I have employer coverage? How do I pay for Part B if I don't want to take Social Security? The expert at Scoresby Medicare Advisors are here to answer your questions.
Part C or Medicare Advantage
Medicare Advantage is the privatization of Medicare. Private insurance companies contract with the government to provide Part A and Part B. Advantage plans often include prescription drug coverage not covered by Original Medicare. These insurance plans offer extra benefits like dental, vision, and hearing. These plans are county specific and are not available everywhere. Medicare Advantage plans change every year, which means you need an annual review of your health insurance coverage to ensure the best fit. This is why you need an independent, trusted, local Medicare insurance specialist to work for you, like Scoresby Medicare Advisors. Call us today!
Part D or Prescription Drug
Government funded Original Medicare consists of Parts A and B. These offer no prescription drug coverage. Part D is offered by private companies as a stand alone policy. Part D is optional, but the government assess life long penalties if you delay signing up after age 65 with certain exceptions. These policies use a drug formulary that can change, or prescriptions your taking can change. This requires an annual review with a knowledgeable Medicare insurance specialist. For more information on avoiding Part D penalties or for help finding a prescription drug plan that works for you, contact Scoresby Medicare Advisors today.
What About Medicare Supplements?
Medicare supplement insurance plans pay for the 20% of hospital and doctor bills the government won't pay. These plans are standardized by the government, however some companies add extra perks like a gym membership. There are many different levels of coverage and may different companies that offer supplement insurance. These plans don't offer drug coverage, so you will need a stand alone prescription drug plan. You cannot have a Medicare Advantage plan and a Medicare Supplement. If you want help deciding between a Medicare Advantage plan or a Medicare Supplement, call Scoresby Medicare Advisors today to schedule a free no obligation consultation.