Heard your friends talking about recent Medicare news and want to know what the deal is? Maybe your 65th birthday is on the horizon, and you want to be prepared?
Here are 7 facts that will help you get started:
- Medicaid and Medicare? What’s the difference?
Both plans are government-run. Medicare began in 1965 to provide health coverage for those 65 and older, as well as those who have severe disabilities. Medicaid provides health coverage for low-income households. It is possible to be eligible for both plans and to receive benefits from both.
- What type of coverage do I get from Medicare?
Medicare is divided into the following 4 parts:
- Part A–Covers hospital stays, nursing facility stays, as well as home health care and hospice care. Medicines that are given to inpatients are also covered.
- Part B–Covers bills paid to physicians and other outpatient services. Along with rehab, medical equipment, and lap tests. Most medicines that are administered in a doctor’s office are also covered in Part B.
- Part C–Is known as Medicare Advantage. Part C is different from Parts A, B, and D in that private health plans allow you the freedom to choose which services you receive in one package.
- Part D–Helps to cover prescription drug costs, some vaccines, and insulin supplies.
- What does Medicare not cover?
Medicare covers bills for treatment that is considered medically necessary. But it does not cover hearing aids, hearing exams, eye exams for prescriptions, dentures, and care in a nursing home or custodial care. Cosmetic surgery, foot care, and acupuncture are also not covered. Use Medicare.gov’s search form to find whether an item, test, or service is covered.
- How much will Medicare cost?
Most people have already paid for Part A through taxes levied during their working life. In 2016, Part B costs $121.80 a month. And Part D costs an additional amount each month, depending on the plan you choose. Keep in mind that you will pay higher monthly fees for Parts B and D if you reported over $85,000 in your last efiled tax return if you’re single. And $170,000 if you are married.
- Is enrollment into Medicare automatic?
It is only automatic if you are already receiving social security at the time you become eligible. If you are receiving social security at age 65, then you will be enrolled in Part A and Part B automatically. In all other cases, you will need to sign up over the phone or in person.
- When should I enroll in Medicare?
The age of eligibility for Medicare is 65. The initial enrollment period is the 3 months before and after your 65th birth month. So you have a total of 7 months to call in or sign up in person. If for some reason, you missed the initial enrollment period, you can enroll between January 1 and March 31. This period is called the General Enrollment Period and it is for those who missed the initial enrollment period. Or who are transferring from other plans.
How do I enroll in Medicare? Where do I call?
You can enroll in Parts A and B by calling 1-800-772-1213, the general Social Security number, and scheduling an interview by phone. Or the interview can be done by visiting your local Social Security office. Part D enrollment must be done on your own initiative and depends on the plans available in your area.
Medicare, and its various parts, can feel confusing at first. There’s a flood of information to digest that can leave one’s head spinning. Thankfully, free consultations for Medicare Health Plans are available and worth looking into. Despite the pressure of a time limit that comes with Medicare enrollment periods, take time to look into your options. Doing research will put your mind at ease, knowing you made a thoughtful and carefully considered choice.
