As you turn 65, you need to consider what you will do about Medicare insurance. When it comes to Medicare insurance, the choices can be a bit confusing. There are four Parts to Medicare. Part A provides coverage for hospital services and stays at skilled nursing facilities, home health care, and hospice care. Part B covers medical expenses, lab tests, and outpatient services. Medicare Part D covers the cost of prescription medications. The last is Part C. This form of Medicare works much like a PPO or HMO does. Most people opt to go with Part A and B. Some add Part D to the mix as well.
Parts A and B do not cover all costs associated with medical care. Each of them has deductibles, copayments, and coinsurance associated with them. To cover these extra expenses, the federal government authorized supplement plans called Medigap Plans. These plans are what many people think of as Medicare insurance. These policies help people cover extra costs they may encounter after an accident or severe illness. When considering Medicare, you have to think about whether you need a supplement policy or not. The common Medigap policy is Plan F and in most cases, this plan will pick up any extra charges, including overcharges known as excess charges. Most times seniors on Plan F see no cost for their medical treatment.
The Parts A and B are private insurance companies that provide everything else related to Medicare. Insurance companies manage Medicare Parts C and D policies. Part C is also known as Medicare Advantage Plans. They also manage all Medicare Supplement Plans 2018 or Medigap plans. You pay premiums for all types of Medicare coverage, including Parts A and B. If you have a Part D policy, that charge is separate from other parts of Medicare. And supplement policies are another premium charge each month. When searching for Medicare plan, you need to put into consideration all the premiums, deductibles, copay, and coinsurance charges in your calculations.
What else do you need to know about Medicare insurance? All policies offered by private companies come at the premiums they determine. While medical insurance law provides some regulation, your age, location, and health can affect your premiums. As with most other types of insurance, pre-existing conditions can be a factor as well unless you are in your initial enrollment period or some other special guaranteed issue period. Premiums for Parts A and B come from income calculations determined by the federal government and most seniors are provided Part A at no cost. The rest are at the mercy of the medical insurance marketplace. It is best to spend a bit of time before turning 65 to examine the options available to find the best fit for your situation and budget.