This paper is an overview of the Medicare system and how it works. The document is intended
for adults who will be applying for Medicare benefits at the present time, or sometime in the near
future. I know that Medicare can be very confusing to most especially to those of you who are
just aging into Medicare. Truth be told Medicare can still be very difficult to understand for
those of you who are past 70, and have been on Medicare for a while. Hopefully by the end of
this document you will understand some of the Medicare basics. For example, the difference
between the different parts that make up the system A, B, D, F, G, and N. You will also have a
working knowledge of the different aging …show more content…
What this means essentially is that you have aged
into Medicare and should you choose, you have the option to enroll in Medicare. This is the 6
months that no insurance company is allowed to ask you any medical questions, and you are
guaranteed issuance of a policy with any company that you choose. I caution all of my
prospective clients to choose a company wisely because if you have any medical issues the
company that you choose today may be the company that you have for the rest of your life. Lots
of seniors have the misconception that no more pre-existing conditions will allow them to change
insurance providers from year to year. Currently this is not so, you had your 6 months when
insurance providers could not ask you any health questions. If you find that you are sustaining
some higher than average yearly rate increases than you anticipated and you would like to
change insurance providers in 3 or 4 years, then those providers have the right to ask qualifying
health questions.
The different parts of Medicare consist of the following: Part A is hospitalization, which is …show more content…
Part A provides for 80% of any
hospitalizations that you may require. Next, part B is also a benefit from the government
provided you or your spouse has worked 60 quarters; however there is a premium that you must
pay based on the money that you have earned over the 60 quarters worked. The median premium
that most seniors pay monthly is, $104.90; however, that is determined each year by the
government. In 2013, the premium was $104.50; this does fluctuate from year to year. The only
reason you would not pay this median premium is if you were considered one of the “1%er’s,”
and made an exorbitant amount of money over your lifetime, and then your premium would be
based on your income. Part B pays 80% of your doctor’s charges such as office visits, lab work,
x-rays, or any other Medicare approved procedure the doctor orders or preforms on an outpatient
basis.
Next I will explain the 3 most popular plans for traditional Medicare supplemental plans,
sometimes referred to as Medi-Gap plans. The benefits for all of these plans are mandated by the
government so that it does not matter which company you choose as your provider, the