Part A covers all the costs you incur by staying in a medical facility, including hospitals, skilled nursing facilities and hospices, among others. You do not have to pay for Part A, assuming you paid enough in Medicare, while you work. Please note that you are responsible for the first $ 1,288 in health care costs; then Part A kicks in. Note also that only a small part of the long term care costs are covered by Medicare. Consider long-term care coverage. We’ll talk later.
Part B covers doctors, tests, medical equipment, ambulance services and more. In general, anything done to you under Part B. You must enroll in Part B when you do not “creditable coverage from another source,” have a job or your spouse, for example. Your monthly premium will be around $ 123 per month, and you will have a $ 167 deductible starting in 2016.
More information about Part C will come later, but for Part D, which is your drug coverage. Part D is administered by a private insurance company and comes with a monthly premium based on your income. If you make more than $ 85,000 per year, are going to pay about $ 73 per month. If you make less, your premium goes down. (For more information, see Medicare 101: Do You Need All 4 Parts?)
There is also an excess. Each plan has some leeway in how much of a deductible to cost, but more than half intend to charge makes the maximum Medicare: $ 360.
There are many problems with Medicare. The one you should be most concerned about is the coverage gaps. Part A is the $ 1,288 deductible and Part B requires that you pay 20% of your expenses, no matter how high your rising medical costs. That would be a lot of money.
As a result of these gaps, most Medicare recipients to purchase additional coverage to fill the gaps. Medicare Advantage, also known as Part C, helps to fill these holes. After you have enrolled in Parts A and B, you can apply for Part C, who will treat what A and B – and often D – not. These Medicare Advantage plans are similar to private health insurance. You may purchase an HMO or PPO plans, and most will have some sort of limit to how much you pay out of pocket each year.
Like any plan, you should compare your options and decide which is best for you. Medicare helps by standardizing the plans. Every business needs all covered by Original Medicare (Parts A and B) except to provide hospice care. Most will also offer some type of prescription drug coverage, but not all. You can use the Medicare Plan Finder to find options in your area. (For more information, see five different features of Medicare Advantage.)
A Medigap policy, also called Medicare Supplement Insurance, is an add-on to your original Medicare coverage that takes care gaps for all the coverage. In all these letters were not confusing enough, Medigap coverage comes in plans A, B, C, D, F, G, K, L, M and N. But the good thing about these letters is that all standardized Medigap policies. You do not have to compare the coverage data as you would for a Medicare Advantage plan. If you want Medicare Plan F, you can compare several companies that offer the plan. It is comparing apples to apples. Of course, you’ll pay a premium for a Medigap policy on top of your other Medicare premiums. (For more information, see Medigap Vs. Medicare Advantage: Which is Better?)
What if you are still employed?
The easy answer is that everyone must have health insurance. The Affordable Care Act mandates this. If you’re 65 and still working, you can use your employer’s coverage, your spouse coverage, Medicare or a combination of Medicare and other coverage.
Regardless, you may need to sign up for parts A and B, even if you are still working or your spouse’s policy. In many cases you do not need to Part B premium payments if you are covered by another policy.
Other times, employers would need to sign up for Medicare to use it as co-insurance. Depending on the size of your company, Medicare or your company policy is to pay for it first. These rules can be quite complicated, so talk to HR department you or your partner for more information. (For more information, see The Employee’s Guide to Medicare.)
The other problem with Medicare
Although the country’s largest insurer, physicians opt out of the program with increasing frequency. Doctors call lower reimbursement rates, long waits to get paid and mandates that limit how they care for their patients. Before you switch your primary insurance of another Medicare plan, find out if your doctor treats Medicare patients. If the answer is no, then you need to get a new doctor if you opt for Medicare. (For more information, see What to do if your doctor does not take Medicare.)
Long-Term Care Insurance
Ongoing care for a disease or just for someone suffering from the effects of aging can be expensive. Nursing facilities may only cost between $ 150 and $ 300 or more per day. Long-term care insurance covers all or part of these costs if you reach or suffer once 65 years of a debilitating illness earlier in life. Most agents do you recommend long-term care insurance as soon as you reach your mid-50s.
Although you can in good health in your 50s, the longer you wait, the more expensive the policy. As with most insurance, there are different types of policies when it comes to long term care insurance. The key is to cover a policy at a rate that most of the costs and applies also to be found with inflation up.
A common policy would cost about $ 5,100 for a couple and pay a maximum of $ 200 per day with a 3% compound inflation rider. With the average cost of nursing home about $ 250 per day for a private room, this policy would not all of your expenses. (For more information, see Choosing Long-Term Care Insurance 😕 What is the best)