Medicare is the program that Americans depend on for health care when they get older. At 65 most Americans are eligible to start collecting the benefits that they paid for while they were working. Medicare by itself is good. But if you want the best coverage you need to know what your choices are. The truth of the matter is that there is no bad Medicare program. The question becomes what is the right plan for you. As people approach 65, the insurance companies send them an avalanche of materials selling their plan. Since they are all good, finding the right plan should be fun.
Essentially Medicare by itself will cover for hospital stays, but not doctor bills. To get the doctor portion of Medicare (Part B), you pay a small amount each month. Usually people get that amount taken out of their social security check before they even get it so they don’t miss it. It is means tested, but most people pay less than $100 for Part B.
In order to get any other program, you must opt for Part B. Once you get your Part B, you then qualify for the supplemental plans. There are two basic plans to choose from. You can choose either a Medicare Supplement or a Medicare Advantage plan. Supplements have been available since the 1990′s, and the Advantage plans were created in 2003.
The Medicare Advantage plans typically do not cost any more each month above what you already pay for Part B. These plans include benefits like copayments for doctor visits and prescription drugs. Prescription drugs are the Part D of Medicare, but since prescriptions are included in the Medicare Advantage plans, you don’t need a separate plan. The problem with these plans is that you have to go to doctors and hospitals within a network. If you go outside of a network, you will not have coverage. Make sure your doctor is in the network if you choose one of these plans.
Medicare Supplements cover everything that Medicare does not pay. You can go to any doctor and any hospital and get everything covered. When you go to the doctor or hospital you don’t have to pay anything. No copayment, no deductible, no coinsurance. The problem is that they can cost up to $100 each month more than you already pay for Part B. Also, people on a supplement plan need to purchase a separate part D program. I generally recommend the Plan F Medicare Supplement.
