Medicare is a health insurance program developed by the federal government. It is available to those who have reached the age of 65, have a permanent disability or are afflicted with end stage renal disease. Medicare Parts A and B cover hospital care and and doctor visits. Part C, otherwise known as Medicare Advantage, was designed to offer an alternative to Parts A and B by allowing those insured to shop for their Medicare coverage in the private sector. Part D provides coverage for prescription drugs.
No Part A Premium
There is no premium required to enroll in Medicare Part A, since it was designed to be paid through payroll taxes while you were working, to help ease the financial burden of medical expenses at retirement. Your hospital stays are covered after the payment of a deductible, and much of any required skilled-nursing care is also paid.
Small Part B Premium
You pay a relatively small premium for Medicare Part B. In 2009, the premium is $96.40 per month for a single person who earns less than $85,000 year. For a married couple, the income threshold is $170,000. Under Medicare Part B, you are covered for doctor visits, as well as home health care and medical equipment.
Freedom of Choice
Under Parts A and B, you are able to choose any doctor that accepts Medicare for payment. This will often allow you to keep the same doctor that you went to before enrolling in the plan. Under a Medicare Advantage plan, your choice is somewhat restricted since you must see doctors within a network, although this can be offset by potential cost savings. This can be beneficial if you are not particular about which doctor you see.
No Proof of Insurability
In the vast majority of situations, you will be eligible for Medicare coverage regardless of previous health conditions. This differs from most health insurance plans in the private sector that require you to qualify based on your health history and/or the result of a physical examination. You also cannot be dropped if you develop a health condition while enrolled in Medicare.
Prescription Drug Program
Once you are enrolled in Medicare Parts A and B, you may be eligible for a prescription drug card that can save you as much as 15 percent on the cost of prescription drugs. Since the need for prescription drugs tends to increase with age, this can amount to a substantial cost savings over time.
Tags: Medicare Part, prescription drugs, cost savings, doctor that, doctor visits, enrolled Medicare
