There is a multitude of information to consider when you are trying to decide which Medicare program(s) will work best for you. That is why knowing how Medicare works will help you in choosing the program(s) that best suits your needs.
Medicare Open Enrollment: October 15 – December 7, 2011
Each year, individuals who have Medicare have the option to look at new choices available to them. Then they can pick which plans will be the most beneficial for them. This year, Open Enrollment is from October 15th through December 7th, which is earlier than previous years.
What Does ‘Open Enrollment’ Mean?
Open Enrollment is the period of time you have to make changes to your Medicare plan for the upcoming year. You will have the opportunity to look at any other plans that are available for you and choose accordingly.
This year the Open Enrollment period is October 15th through December 7th.
-This means that October 15th is the first day that you can make any changes to your coverage for 2012.
-December 7th is the last day that you can initiate a new plan for 2012.
What is the Difference Between Medicare Parts A & B?
Medicare Part A = Hospital Insurance
Medicare Part A is used to cover inpatient care at skilled nursing facilities (does not include long term or custodial care), inpatient hospital care, home health care and hospice.
If you stay overnight in the hospital, it does not necessarily mean that you are considered an ‘inpatient.’ You are not considered an ‘inpatient’ until you are formally admitted into the hospital with an order from a doctor. Your out-of-pocket costs are affected depending on whether you are an outpatient or an inpatient.
Medicare Part B = Insurance for Services that are Medically Necessary, Medical Insurance
Medicare Part B is used to cover services such as outpatient care, doctors’ services, home health services, preventative services and various other medical services. It covers the supplies and services that are necessary to either diagnose or treat qualifying medical conditions.
Do Medicare Part A & Part B Cost the Same?
No, Medicare Part A does not usually have a premium since you probably paid Medicare taxes when you were employed, whereas, Part B does have a monthly premium that you must pay.
If you are not able to receive Part A without paying a premium, you could possibly purchase Part A if you qualify with one of the conditions outlined below:
-You are under 65, but you are disabled and your Part A coverage that was premium-free was terminated because you went back to work. It is important to note that if you are under the age of 65, and you are disabled, you can still receive Part A premium-free for up to eight and a half years after returning to work.
- You are 65 or older and are entitled to, or are in the process of enrolling in, Medicare Part B and meet the residency or citizenship requirements.
In the majority of cases, if you do purchase Part A, you must have Part B as well and pay the monthly premiums for each of them. If your resources and income are limited, the state you reside in may assist you in paying for your Part A and/or Part B Medicare coverage.
Is there a Premium for Part B?
Individuals that have Part B pay a monthly premium. Most will pay a standard amount. However, Social Security does contact some individuals who will be required to pay more because of their income. If you do not sign up to receive Part B when you first become eligible for Medicare, you may be charged a penalty if/when you do decide to purchase Part B Medicare coverage.
What Do I Have to Do to Start Receiving Part A?
You will be enrolled in Part A automatically unless you specify that you want to join Part C, which is a Medicare Advantage Plan.
Part A helps to cover only services that are considered medically necessary.
Do I Need Medicare Part A and Part B?
Part B Picks Up Where Part A Leaves Off
Medicare Part B picks up where Part A leaves off. If you have any kind of chronic condition that will require routine doctor visits or tests, it would be wise to consider obtaining both Parts A & B.
Medicare will not cover everything and does not cover the entire cost for a lot of the medical supplies or services that are covered. The amount covered is based on what Medicare plan you actually have. However, Part B will help provide additional health care coverage, which will help decrease the worry many experience concerning their medical costs.
No matter what coverage you choose, make sure you understand the coverage, options available and premiums.