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What is Medicare and Medicaid?
Medicare and Medicaid are two very substantial government-run healthcare programs which you have no doubt heard of before. Medicare website — Found Here | Medicaid website — Found Here Medicare is the federal program available to people over age 65, while Medicaid is a federally subsidized state program that provides care to lower-income families. Medicare is a government insurance program created to help retirees and the disabled. Continue reading...
What are Medicare Benefits?
Medicare is a medical insurance benefit for Americans 65 years of age or older, but it also provides coverage for those with severe disabilities, ALS (Lou Gehrig’s disease), and ESRD (end-stage kidney disease) at any age. The premiums for what is known as Part A are paid throughout the insured’s working career, with Part B available as a supplement at low cost. Once you’re over 65, this becomes your medical insurance unless you’re still on an employer’s plan. Medicare provides coverage for in-patient procedures and short stays in the hospital, as well as hospice care and a few other small benefits for home health care. That is just for Part A—the “free” portion of Medicare people pay into over their working lives as part of their FICA taxes. Continue reading...
Who Pays for Medicare?
Taxes pay for the entirety of Medicare part A. For the optional or supplemental policies which fall under the Medicare moniker, a regular premium may be due, but it’s still better than what premiums would look like if there were no Medicare. The Social Security Administration (website—here), which is funded by taxes deducted from your paycheck under FICA, or as part of the “self-employment tax,” administers both Social Security and Medicare. Continue reading...
What is Medicare Part A?
Medicare Part A is the standard, baseline hospital coverage that comes at no cost as part of everyone’s Medicare benefits. It will pay for inpatient stays at hospital and skilled care facilities, but only for a certain number of days. Medicare Part A is hospitalization and inpatient care insurance. It will pay fully for about 20 days of care, but only if there is an inpatient procedure first and the patient appears to be convalescing. If the patient is not gradually recovering, their Medicare benefits will be suspended. Continue reading...
What is Medicare Part B?
Medicare Part B covers some doctors visits, outpatient care, and many other services not covered by Part A. There is a standard premium which is around $100/month for those receiving social security benefits at the same time. Medicare Part B covers outpatient procedures – visits to the doctor, regular checkups, physical therapy, etc. In other words, it covers medical expenses that don’t involve a hospital stay. Medicare Part A is free (if you’ve contributed to Social Security for at least 10 years), but Part B comes with a price tag. Continue reading...
What is Medicare Part C?
Medicare Part C, also known as Medicare Advantage, is offered in a few variations by several third-party carriers. These plans are approved by Medicare and a person must still pay their Part B premiums to get them, but the Medicare Advantage plans are designed to be more appealing with their deductibles and copays than original Medicare Part A and Part B. Medicare Part C, is a private plan that is mandated to be at least equal in coverage to Part A and Part B. Continue reading...
What is Medicare Part D?
Part D is prescription drug coverage to supplement the coverage of Medicare Part A and Part B. It can be a standalone policy, or it can be included in a package with Part C. Medicare Part D is purchased through private insurers. While the premiums vary, they tend to range from $15- $150 a month. There was a maximum deductible of $360 for these plans in 2016, after which the insurer would trigger 75/25 coinsurance or something in that range. Continue reading...
What Does Medicaid Cover?
Medicaid will cover many things, but it is reserved for those without enough assets to get such care on their own or to pay for other coverage. Some examples of covered services include checkups and childbirth for low income pregnant women, and nursing home care for low-income elderly people with long term care needs. Medicaid covers a very wide range of medical costs, including hospital expenses, visits to the doctor, nursing home expenses, and so on. Continue reading...
Should I Buy a Medigap Policy?
There are pros and cons to buying so-called Medigap coverage, and it can depend on how much medical care and services you anticipate needing. They cover all or nearly all of the out-of-pocket costs left over by Part A and Part B, but they don’t offer Part D coverage. Obviously, buying a Medigap policy will mean additional costs. If you have the means and you’re looking to extend your medical insurance to areas not covered by Medicare Part A and B (original Medicare), it might be a good option. Continue reading...
How Much Will Medigap Cost?
There are many Medigap policies offered by many different insurers, so this is hard to answer. Plan F is the most robust coverage, currently, and it will be the most expensive, with premiums that can go up to $10,000 a year. There isn’t a concrete answer. Your costs will depend on how old you are, your health, and which of the 12 plans you choose. Medigap policies come in flavors such as Part F, Part K, and Part L. Continue reading...