I was going through Yahoo and found this very enlightening article that I want to share with all my readers. It is about Medicare.
Medicare is the nation's largest health insurance program, covering over 40 million Americans. As long as you've contributed enough to the program (through FICA taxes), you'll be eligible for Medicare when you turn 65, regardless of whether you're retired or not. The best time to apply for Medicare is at the first opportunity to do so : the seven-month period that starts three months before your 65th birthday. The program is divided into two components: Part A and Part B.
Part A is called hospital insurance and covers most of the costs of a stay in the hospital, as well as some follow-up costs after time in the hospital. Part A pays some other outpatient medical services, including medically necessary equipment and supplies, home health care, and physical therapy. Under most circumstances, you do not have to pay a premium for Part A.
Part B is medical insurance. This optional coverage is intended to help pay doctor's bills for treatment in or out of the hospital. It also covers many other medical expenses you incur when you are not in the hospital, such as the costs of necessary medical equipment and tests. If you elect Part B, the monthly premium is automatically deducted from your Social Security check. But there are some out-of-pocket expenses that Medicare will not pay for, including prescription drugs, although a Bush Administration proposal to incorporate a prescription drug benefit into the program is under consideration in Congress.
You now have three options for Medicare Part B coverage: the Original Medicare Plan, a Medicare Managed Care Plan (like an HMO), and the Medicare Private Fee-for-Service Plan. Each of these programs has pros and cons. And some may not be available in certain geographical areas. With the Original Medicare Plan, you pay your Part B monthly premium and then pay for additional services as you use them. Medicare Managed Care and Private Fee-for-Service plans are offered by private insurance companies. These programs were initiated to give Medicare recipients more choice in their coverage. With these plans, you must continue to pay your Part B premiums, and you may also have to pay an additional premium to the insurance company as well as any related deductible or co-insurance payments. However, the services you receive may be more comprehensive than those offered through the Original Medicare Plan.
If you opt for the Original Medicare Plan, you might also be interested in securing Medicare Supplement Insurance, or "Medigap" insurance. The term Medigap comes from the notion that these insurance policies will cover the gaps in Medicare payments. Medigap doesn't fill in all the gaps -- but it helps. Before you buy a Medigap insurance policy, consider not only the services covered but also the amount of benefits and the monthly cost of the policy. Also pay attention to how much premiums may rise in years to come. You might also want to compare Medigap with the Medicare Managed Care and private fee-for-service programs, if they are offered in your area.
This article is reproduced from Yahoo Finance! Great reading material :)
Medicare is the nation's largest health insurance program, covering over 40 million Americans. As long as you've contributed enough to the program (through FICA taxes), you'll be eligible for Medicare when you turn 65, regardless of whether you're retired or not. The best time to apply for Medicare is at the first opportunity to do so : the seven-month period that starts three months before your 65th birthday. The program is divided into two components: Part A and Part B.
Part A is called hospital insurance and covers most of the costs of a stay in the hospital, as well as some follow-up costs after time in the hospital. Part A pays some other outpatient medical services, including medically necessary equipment and supplies, home health care, and physical therapy. Under most circumstances, you do not have to pay a premium for Part A.
Part B is medical insurance. This optional coverage is intended to help pay doctor's bills for treatment in or out of the hospital. It also covers many other medical expenses you incur when you are not in the hospital, such as the costs of necessary medical equipment and tests. If you elect Part B, the monthly premium is automatically deducted from your Social Security check. But there are some out-of-pocket expenses that Medicare will not pay for, including prescription drugs, although a Bush Administration proposal to incorporate a prescription drug benefit into the program is under consideration in Congress.
You now have three options for Medicare Part B coverage: the Original Medicare Plan, a Medicare Managed Care Plan (like an HMO), and the Medicare Private Fee-for-Service Plan. Each of these programs has pros and cons. And some may not be available in certain geographical areas. With the Original Medicare Plan, you pay your Part B monthly premium and then pay for additional services as you use them. Medicare Managed Care and Private Fee-for-Service plans are offered by private insurance companies. These programs were initiated to give Medicare recipients more choice in their coverage. With these plans, you must continue to pay your Part B premiums, and you may also have to pay an additional premium to the insurance company as well as any related deductible or co-insurance payments. However, the services you receive may be more comprehensive than those offered through the Original Medicare Plan.
If you opt for the Original Medicare Plan, you might also be interested in securing Medicare Supplement Insurance, or "Medigap" insurance. The term Medigap comes from the notion that these insurance policies will cover the gaps in Medicare payments. Medigap doesn't fill in all the gaps -- but it helps. Before you buy a Medigap insurance policy, consider not only the services covered but also the amount of benefits and the monthly cost of the policy. Also pay attention to how much premiums may rise in years to come. You might also want to compare Medigap with the Medicare Managed Care and private fee-for-service programs, if they are offered in your area.
This article is reproduced from Yahoo Finance! Great reading material :)
