How Seniors Should Choose a Medicare Plan

What Is Medicare?

Medicare is a national health insurance program that is partially funded by the federal government. It is available for three groups of people:

• Those over the age of 65
• Those under the age of 65, who are eligible for Social Security Disability Insurance
• Those that are suffering from End-Stage Renal Disease.

Medicare is available in four parts – A, B, C, and D that cover the different healthcare requirements that you may have.

Here are a few important things to keep in mind when selecting a Medicare plan:

Original Medicare Plan vs Medicare Advantage Plan

Original Medicare Plan

Original Medicare Plan involves two parts, A and B. Part A is primarily used to cover hospital insurance such as the costs involved in hospital admission, nursing facilities, and hospice care. Part B is used to cover medical insurance involving outpatient costs such as doctor’s visits, and diagnostic tests.

Medicare Advantage Plan

Medicare Advantage Plans is Part C of Medicare and is provided by approved private insurance companies. To be eligible for the Medicare Advantage Plan you need to have both Part A and Part B of the Original Medicare Plan. They cover all the benefits of parts A and B of Medicare along with additional coverage, including dental, vision, and hearing coverage. They can also help you cover some of the copayments and coinsurance payments from Part B of Medicare along with other benefits.

Prescription Drug Coverage

Prescription drug costs are covered by Part D of Medicare. It is coverage that is purchased from an approved private health insurance company. These involve a monthly premium that can vary based on your location and other coverage.

Supplemental Medicare Coverage

Medigap is supplemental coverage that can help cover the out-of-pocket costs of Medicare. It comes in various forms – parts A, B, C, D, F, G, K, L, M, and N. These different plans help cover varying degrees of out-of-pocket costs. The most popular and expensive option is the Part F plan.

Enrolling for Medicare

You are eligible to enroll for Medicare three months before and three months before the month that you turn 65. These seven months are called the Initial Enrollment Period and allow you to apply for all parts of Medicare. Beyond this, the General Enrollment Period lasts from January 1st to March 31st. However, this may involve late fees.