It’s the time of the year again to make health insurance decisions for 2016. Understanding group health insurance is confusing and understanding Medicare raises a different set of challenges.
There are corners and cracks in Medicare that are a little taxing and can lead to unexpected expenses.
Medicare is a health insurance program for people over the age of 65, but also covers people under the age of 65 with certain disabilities and people with end stage renal disease.
What Medicare includes
Medicare Part A (hospital insurance) includes inpatient care in a hospital, specialist care facility and hospice. It also includes services such as laboratory tests, surgeries, doctor visits and home health care. This cover is mandatory for all persons and you will automatically be registered at the age of 65.
Medicare Part B (health insurance) includes services provided by physicians and other health care providers, outpatient care, enduring medical equipment, home health care, and some preventative services. Part B is selectable with the option to reject it at enrollment or drop it at a later date.
As a rule, anybody should have Medicare B, even those who have veterans or Indian health care. https://www.medicaresupplementplans2019.com/medicare-supplement-plan-g-2019/
Medicare also offers coverage for prescription drugs; it is referred to as part D. The government relies on private insurers to market prescription plans with different costs and coverage options. As this is a competitive industry, insurers tend to keep the premium and coverage in parity.
Even if Medicare covers a benefit or an item, you usually pay for a deductible, co-insurance, and co-payments.
Some of the services and items that Medicare does not cover include:
- Most dental care
- Long-term care
- Eye examinations related to the prescription of glasses
- Cosmetic surgery
- Routine foot care
- hearing aids
If you or your spouse has paid Medicare taxes while you work, you typically do not have to pay a monthly premium for Medicare Part A (hospital insurance).
It’s a bit misleading as all health insurance costs are premium, and for Medicare Part A the monthly premium is $ 407. If you have not paid Medicare taxes during your pre-Medicare years, you pay the $ 407.
Part B requires premium payment from everyone on Medicare because Part B is an elective insurance. You can decide not to take it during regular Medicare enrollment. If you choose it, the Part B bonus is $ 104.90 per month.
If you are not registering for Part B when you are first eligible, you will have to pay a late enrollment deadline for choosing Part B after you first bid and you will pay the penalty as long as you have Part B.
Your monthly bonus for Part B may increase by 10% for every full 12 month period you might have chosen to wear Part B. You may also have to wait until the General Registration Period (January 1 through March 31) to sign up for Part B, and reporting will start on July 1 of that same year.