What Is Railroad Medicare?

If a retiree receives his Medicare benefits through the Railroad Retirement Board, then those benefits are known as Railroad Medicare. Anyone who has worked at least 10 years for a railroad is eligible for railroad benefits under the Railroad Retirement and Railroad Unemployment Insurance Acts. The Railroad Board works with the Centers for Medicare and Medicaid Services to provide the same type of benefits that non-railroad recipients of Medicare receive.

What It Covers

• Railroad Medicare is regular government Medicare coverage, only it is for railroad retirees. Part A covers hospitalization. Part B covers physician and laboratory services and requires a monthly premium the federal government may pay depending on the retiree's employment history. The Railroad Retirement Board enrolls retirees as they retire, and any monthly premiums are deducted from the retiree's monthly retirement benefit. Part D is prescription drug coverage.

Eligibility

• Enrollees must be railroad employees and at least 65 years old. If the retiree is eligible for railroad retirement benefits, then there is no cost for Part A Railroad Medicare. If the railroad employee has permanent disabilities, he is eligible for Railroad Medicare even if he is under 65 years old. Also, anyone who has worked for the railroad for at least 10 years can pre-enroll in Railroad Medicare.

Cost

• Retirees pay monthly premiums and deductibles and co-pays at the time a service is received. In 2010, the Part A deductible was $1,100, the Part B deductible was $155 and the Part D deductible was $310. The monthly premium for Part B in 2010 was $110.50 a month and $32 a month for Part D. If the Railroad Medicare costs are too expensive for you, you may need to enroll in a regular state Medicare Plan, which are for lower-income people. The state programs may not require any additional costs for coverage.

Medigap

• Just as with regular Medicare, Railroad Medicare has a "gap" in coverage. Medigap policies are sold through private insurers to help pay costs that Railroad Medicare doesn't cover. The Railroad Retirement Board doesn't automatically enroll retirees in this program. They must choose to do so themselves. However, when the board enrolls a retiree in Railroad Medicare, a six-month open enrollment period for Medigap insurance begins. During this time, a retiree can't be denied coverage, have restrictions placed on their policy or pay a higher premium because of health problems.