Facts & Tidbits on Medicare

Medicare is a government-run health insurance program for the elderly and the disabled in the United States. This program has several parts and it can be confusing to those who are unfamiliar with how it works. Understanding the basics of Medicare can be an advantage when you become eligible for coverage.

Medicare Parts

• Medicare is broken up into several parts, with each providing a set of benefits for the insured. Medicare parts A and B are provided directly by the government. All other parts are provided by private insurance companies that the government contracts with. Medicare part A is a type of insurance that covers hospital bills. Everyone who is eligible can be enrolled in this part of Medicare at no charge. Medicare part B is an optional coverage that provides help with doctor costs. Medicare Part C is another type of coverage also known as Medicare Advantage. With these plans, you can combine the benefits of part A and B into a single plan.

Medigap

• Many policy holders who use Medicare part A and B have gaps in their coverage. These plans only provide limited benefits and may not give you everything you need when it comes to health coverage. Because of this need, Medigap coverage is often purchased with these plans. Medigap is a type of supplemental insurance that will help fill in the gaps that are left by Medicare coverage. For example, Medicare part A only covers 80 percent of covered costs. With a Medigap plan, you can get help with the other 20 percent. You can get this kind of policy to help with prescription drugs or to put a limit on your total out-of-pocket expenses.

Part B Premium

• Part B of Medicare is a type of optional coverage that you could choose to not enroll in when you are enrolled in part A. If you decide to pass on Medicare part B when it becomes available to you, it could be costly. If you do not take advantage of Medicare part B within a certain amount of time, you will have to pay a higher premium for this coverage. The premium for part B comes from your own pocket and it goes up the longer you wait to take it.

Long-Term Care

• One of the most prominent needs for senior citizens is help with long-term care. Long-term care involves going into a nursing home or having a nurse come and provide home care. With basic Medicare, you do not get any benefits for long-term care. You may get some benefits when going into a skilled nursing facility after rehabbing from a stay in the hospital. Besides that, you have to rely on your own savings or a long-term care insurance policy.