About American Trust Insurance Brokers
Here are the basics and some things to consider when making your choices.
First, you must understand your OPTIONS.
ORIGINAL Medicare (Parts A & B) is a federal health insurance program for people age 65 and older and others with certain disabilities.
Medicare pays fees for your care directly to the doctors and hospitals you visit. This has been referred to as "fee for service."
Original Medicare alone does not cover all of your hospital and medical expenses, and it does not include prescription drug coverage.
Part A helps with hospital costs. If you or your spouse paid into social security for at least 10 years, there is no monthly premium. Most people are
automactically enrolled in Part A when they first become eligible for Medicare.
Part B helps with doctor and outpatient care. You pay a monthly premium. Most people have to sign up for Part B.
Part D helps pay for prescription drugs. You can get Part D coverage as a stand-alone plan or as a part of a Medicare Advantage Plan...explained later. Part D is voluntary, but if not enrolled when you are first eligible, and then you decide later to enroll, there may be a penalty on your premiums unless you qualify for an exception.
Parts A and B do not cover most prescription drugs. And you pay deductible, copay and/ or coinsurance for any services not covered.
There are no annual out of pocket maximums under Part B so if you are seriously ill, the gaps and no out of pocket limit could create BIG expenses.
Medicare plans offered through private insurance companies help cover services not covered by Original Medicare.
For example, Medicare Supplement Insurance Plans cover some costs not covered in Parts A and B. These are also referred to as Medigap Plans because they fill in the gaps of original medicare.
Medicare Supplement Plans offer nationwide coverage and are available by state. You do not need referrals and can go anywhere that Medicare is accepted. Your PRIMARY insurance is Medicare and your secondary is the Supplement. Depending on which Supplement Plan you choose will determine the coverage and monthly premiums. They are all Standardized Plans, ranging from the letters A-N. The F plan being the MOST comprehensive.
Most people with these types of plans will add a stand-alone Part D so that they are covered for Parts A B and D...hospital, doctors, and prescriptions.