Do you need to know about Medicare insurance?
Medicare insurance is a federally-funded healthcare program designed for seniors and people with certain qualifying conditions.
To see if you or someone you love may qualify for Medicare, learn more about who qualifies for Medicare, what Medicare covers, and how to sign up for Medicare.
Table of Contents
Why You Need Medical Insurance
You should absolutely have medical insurance, even if you feel healthy. Medical care is extremely expensive, and the bills can force someone into debt or bankruptcy.
Health insurance covers you in the case of an accident or an unexpected illness. People with pre-existing illnesses will have coverage for the expensive healthcare required to treat their condition.
Healthcare is especially important as you get older. As we get older, the body and mind slowly deteriorate.
As you get older, your medical costs will likely increase drastically. Medicare helps prevent medical expenses from depleting your savings, so you can pass your wealth down to your loved ones.
It’s important to note that most medical insurance does not cover all medical expenses. There will still be out-of-pocket expenses to you, the patient.
Most insurance plans have a deductible. The insurance coverage will only pay a percentage of the cost of coverage until you reach your deductible for the year, at which point the insurance company will take over 100% of covered treatments.
Separate from the deductible, you may also have to pay a copay every time you meet with your doctor. You will continue to pay the copay even after you reach your deductible.
You’ll also have to pay for prescriptions.
Medicare
Lyndon B. Johnson officially signed Medicare into effect in 1965, which Harry Truman proposed 20 years earlier.
It was originally intended as a way to support seniors with their prevalent healthcare needs, and it has evolved over the years into its current form.
Who Qualifies for Medicare?
American citizens who have contributed 40 work credits toward Medicare (usually through paying taxes) over the age of 65 generally qualify for Medicare.
Most people who have received social security disability for 24 months also qualify for Medicare, even if they aren’t 65 yet.
Keep in mind that Medicare only covers certain aspects of healthcare. Those who qualify may only qualify for certain parts of Medicare.
What Does Medicare Cover?
There are four parts to the current Medicare system.
Medicare Part A covers hospital visits, including testing and prescriptions utilized during the hospital stay. It also covers hospice and some at-home care, but not long-term at-home care. When seniors with a qualifying work history reach 65, they only receive Medicare Part A for free.
Medicare Part B covers outpatient doctor visits and testing done outside of a hospital stay. If you have Medicare Part B coverage, you may still have to pay a copay for doctor’s visits and a deductible, depending on your coverage.
Medicare Part C is an optional coverage outside of the typical Medicare plans to add additional coverage on top of the typical coverage for an additional premium each month. This is the only component of Medicare that will cover vision and dental outside of hospital treatments. Plans vary greatly, so talk to a provider to match you with the plan that best suits your needs.
Medicare Part D covers prescription medications. You may still have to pay part of the cost of your prescriptions. To save money, you can ask about getting generic prescriptions instead of name-brand prescriptions.
How to Sign Up for Medicare
The easiest way to sign up for Medicare is through Social Security. When you apply online through Social Security, the system may also automatically identify discounts that you qualify for.
When you go to apply for Medicare benefits, you’ll want to fill out the application as accurately and in as much detail as possible. It can be helpful to have your past medical records and medical insurance as well as your income information.
You will automatically be enrolled in the programs that apply to you, and you’ll also receive options for supplemental insurance. After you receive your options, you’ll select the plans that appeal to you.
You will receive medical cards and information about your plans in the mail. Once you have your new information, you will find your new doctor and set up an appointment under your new Medicare insurance.
Picking a Medicare Plan
With all of the different insurance policy options, it can be difficult to find the one that’s right for you.
You can change your Medicare plan once a year during the open enrollment period. You may also qualify for special enrollment periods outside of the open enrollment period. Since you can change your plan every year without penalty, it’s best to pick the plan that applies best to your needs right now instead of your future needs.
Pay close attention to the out-of-pocket costs of the plan you choose so that you can adjust your monthly budget accordingly.
A plan with a high deductible and high copays generally has lower monthly premiums. However, you’ll end up paying much more if you do need to use your insurance more than you anticipated.
Medicare providers can help you pick the right plan for you based on your past and current medical history and your financial situation. Contact your local Medicare provider to sign up for Medicare or find ways to improve your program plan.
