Medicare
The Medicare program is a federally administered insurance plan that pays for certain categories of medical bills. There are specific requirements that people need to meet in order to be eligible for Medicare insurance, the most important of which are mentioned below.
Who can fill out a Medicare application?
You can apply for Medicare if you fall into one of the following categories:
- Aged 65 years or over
- Have a specific type of disability (these are outlined in detail on the application form)
- Have end stage renal disease regardless of age
How does Medicare work?
Medicare insurance works in much the same way as any other health insurance plan, the main difference being the amount it costs. There are four separate sections to a Medicare policy, only the first of which free of charge. The additional three sections are termed Medicare supplemental plans and can be bought on top of Part A for a reasonable monthly premium. This means that you as the insured decide what Medicare benefits you want and tailor your policy to suit.
What are the four sections of a Medicare plan?
Part A is termed hospital insurance and pays for any hospital stays that are deemed necessary. It also pays for home care or equipment required after a hospital stay if ordered by a physician. This section of a Medicare health plan is often subsidized by payroll taxes and is available free of charge to those who qualify.
Part B is the first of the Medicare supplemental insurance sections. It covers physician visits, some home care costs, out-patient hospital visits and various other services related to old age and disability. Being a Medicare supplemental it is voluntary and costs just under $100 per month per person. In addition there is an annual $135 deductible.
Part C is known as the Medicare Advantage Plan. This custom built plan is designed by you for your specific medical needs and will differ greatly when compared to someone else’s plan. Again this supplemental is voluntary and may require you to take a Medicare medical exam.
Medicare Part D is a relatively new section and is known as the prescription drug plan. It is sold to people with the original Medicare plan by private insurance companies. There are numerous Medicare Part D plans available that cover a wide variety of drugs and so you simply choose the plan that covers the drugs you need or may need in the future. These plans pay between 75 percent and 90 percent of the cost of prescription drugs, depending on the amount you spend annually, and so the amount you save on prescriptions can quickly outweigh the Medicare cost of Part D.
You can apply for and buy Medicare online or alternatively you can fill in paper forms. Either way, it is worth looking into if you think you qualify.