What Is the Relationship Between RR Medicare & Conventional Medicare?

Medicare comes in two types: Social Security Medicare, which is what most people have, and Railroad (RR) Medicare for railroad workers and their families. Both types of Medicare offer the same benefits and are governed by the same laws. The only difference between RR Medicare and Social Security Medicare is that a company called Palmetto GBA administers RR Medicare.

Different Medicare Cards

• If you have RR Medicare, when you see health-care providers, make sure they know you have RR Medicare instead of Social Security Medicare because it affects their billing procedures. The front of your RR Medicare card states that it is Medicare Health Insurance provided by the Railroad Retirement Board. Also, your Medicare Claim Number has a letter in front of your number, unlike a Social Security Medicare Claim Number, which ends with a letter.

Medicare Part A

• Medicare Part A is hospital insurance. You are eligible for free Part A coverage at age 65 if you receive or are eligible to receive Railroad Retirement or Social Security benefits. Before age 65, you are eligible for free Part A insurance if you have had a total disability for at least 24 months and been entitled to monthly disability benefits. You are also eligible for free coverage if you have permanent kidney failure.

Medicare Part B

• Medicare Part B is optional medical insurance for which you pay a monthly premium. The premium amount is based on your income and ranges from $96.40 to $369.10 a month in 2011.

Medicare Parts C and D

• Medicare Part C, also known as a Medicare Advantage Plan, is an alternative to having Part A and B coverage. You buy a Part C plan from a Medicare-approved insurance company. You also buy Medicare Part D, also known as a Prescription Drug Plan, from private insurance companies. However, if you choose to buy a Medicare Advantage Plan, it often includes prescription drug coverage.

Considerations

• Medicare has deductibles and copayments and does not cover all expenses. If you want more coverage, you may also consider purchasing a Medigap Plan, also known as Medicare supplemental insurance.