Investments
2008-10-01 15:56:00
Medicare Part A and Part B
I’m going to turn 65 next year. What should I know about Medicare Supplement or Medigap Insurance?
The first thing you should know is that there are limits to what Medicare Part A hospital coverage and Part B physician’s services and supplies coverage will pay for, so it really makes sense to purchase a good Medicare Supplement insurance policy.
Both Medicare Part A and Part B have deductible and coinsurance features that, without Medicare Supplement insurance, are the patient’s responsibility. The Medicare deductible is $1,024.00. After that, Medicare pays 100% of the first 60 days of hospitalization during your lifetime and then all but $256 per day from 61-90 days and all but $512 per day up to 150 days. Everything after that is the patient’s responsibility. Medicare Part A only pays for the first 20 days of skilled nursing facility care and then all but $128 for the next 80 days. A Medicare Supplement policy can pay the difference up to the 100th day. You should know that Medicare Supplement insurance will not pay for skilled nursing care after that and should not be considered a substitute for a good long-term care insurance policy.
For Physician’s services under Part B, patients are responsible for the $135 deductible and 20% of the costs up to a certain limit. A Medicare Supplement policy can pay the deductible plus the coinsurance and as much as 100% of the costs of Medicare eligible or Excess Benefits up to the Medicare limit.
Persons who are both 65 and enrolled in Medicare Part B are eligible for open enrollment in a Medicare Supplement policy which means that an insurance company can’t refuse your application for medical reasons during that period. There are other situations where persons have the right to purchase a policy. These are called guaranteed issue and usually cover periods when a person is moving from one plan to another. For more information go to www.medicare.gov.
