Medicare Basics: A Complete Guide
It is common to feel like a fish out of water when navigating Medicare. Though popular and useful to millions of seniors, there are many people – beneficiaries and prospects alike – who have varied misconceptions about the nationwide health insurance program.
There are some critical aspects of Medicare that people are simply not aware of. Let’s clear the fog on Medicare, addressing the myths and misconceptions to help you make better and informed decisions when enrolling in Medicare.
What People Think
There are many misconceptions around the facts and details of Medicare. Some of these come from the general public, while others spring directly from Medicare’s annual cost and benefit changes.
The costs of Medicare, primarily the premiums, change every year. Couple that with the different plans and coverage amounts and you have a perfect storm for confusion. With all the nuances, beneficiaries can benefit from a centralized, definitive hub of information.
As a provider of health insurance for seniors, Medicare is seen as a necessary social program. Some are even lead to believe that it is free.
Unfortunately, it is not free of charges; it is made up of premiums, deductibles, coinsurance costs, prescription drug costs and other out-of-pocket costs.
While Medicare does have certain services that are free in a sense, it certainly is not free as a whole.
Part A, or hospital insurance premium, is free for eligible beneficiaries, those who have paid taxes to Medicare while working.
Medicare Part B is not free at all, as it charges a premium based on your income.
Parts C, D and Medicare Supplement cover different services and purposes; and they all charge costs of their own as well.
There are other factors to consider when arriving at the truth about Medicare, besides costs alone. It important to separate the facts from fiction. Read as we debunk some commonly held myths about Medicare.
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Know the Costs of Medicare
Here is a glance at the basic 2018 costs of Medicare.
|Part A||Part B||PartC||Part D|
|Premium||$413||$134||Varies by plan||$10-$100|
|Deductible||$1,340 per each benefit period||$183||Varies by plan||$0|
|Co-insurance and Other costs||$335/day for days 61-90 in hospital||20% of the service after you pay off the deductible||Varies by plan||75% of prescription drugs after you pay off the deductible|
Myths Vs Reality
Lesser Known Facts and Happenings in Medicare
Medicare has been around for over half a century. It has undergone various changes, some of them more obscure than others. Here are a few components of Medicare that you should know when enrolling.
In December 2014, Medicare implemented cutbacks on nonemergency ambulance services in 3 states: New Jersey, Pennsylvania and South Carolina. This 3-year pilot program was developed due to the rise in fraudulent transportation operators, who had increased the number of nonemergency ambulance uses. The pilot program seeks to cut down on fraud and abuse. Thus, it approves nonemergency ambulance coverage to only those who are completely bedridden.
2. Reasons Why Medicare Is So Expensive
Those interested in Medicare may have noticed that Medicare raises prices as time progresses. The main reason behind Medicare’s rising costs is due to its demographics. Now that baby boomers are entering the age of retirement, there are more seniors dependent upon Medicare. With more beneficiaries tied to Medicare, it has a wider net to cover. The Medicare system partially holds the blame for increasing costs, as doctors and hospitals capitalize on the fact that Medicare will pay for expensive drugs and procedures.
3. Lack of Information Can Lead to Poor Decisions
Medicare is not always direct in its communication with its beneficiaries or soon-to-be enrollees. Based on the Kaiser Family Foundation 2012 survey, over a third of low income seniors were unaware of Medicare’s enrollment periods.
Education on Medicare is problematic for many seniors. With little knowledge on the many facets of Medicare, seniors often make ill-informed decisions, several of which can cost them.
4. Gaps in Coverage
Traditional Medicare, or Medicare Part A and Part B, do not provide any type of safety net for financial havoc due to a catastrophic disease. This has not changed in 50 years. Claim rejections are also higher than rejections by private insurance companies. Medicare also does not cover supplies like eyeglasses, dentures and copies of X-rays. It doesn’t cover services like routine eye exams, foot care, long term care, dental checkups and cleanings.
The Truth About Medicare Supplement
Medicare Supplement is a private insurance policy that beneficiaries can obtain from private companies. Medicare Supplement can help pay for some of the healthcare costs and services that Original Medicare doesn’t cover. Essentially, Medicare Supplement fills the gaps of original Medicare for a more comprehensive health insurance. Some of the services and costs Medicare Supplement covers include:
Medical Care Abroad
Doctor’s Office Visits
Outpatient Hospital Visits
Inpatient Hospital Visits
There are many myths, half-truths and mistruths circulating about Medicare. Despite the storm of confusion brewing among many hopefuls and enrollees, it is best to consider the facts outlined above when considering Medicare. If you are still unsure about Medicare or want to learn how a Medicare Supplement plan can help you, please contact one of our informed agents.