Medicare Basics

Medicare eligibility at age 65 is an exciting change to look forward to as we get older. Medicare is a federal insurance program that is designed to issue basic insurance to those age 65 and older, along with specific qualified individuals.  Medicare has several parts.

Medicare Part A

  • Associates with Hospital expenses to help pay for major medical.

Medicare Part B

  • Associates with routine and preventative medical expenses.

  • Part B is elective and a premium is paid to Social Security upon enrollment.

  • You are required to enroll in to Part B to qualify for a full coverage policy and to get prescription drug coverage.

Medicare Part D

  • Is Prescription Drug coverage.

Original Medicare (Parts A, B) pays a portion of your medical expenses called Medicare’s Approved amount. This may not be adequate coverage on it’s own. To have full coverage you will need to incorporate a Medicare Insurance Plan through an insurance company. It is important to limit your exposure to excessive medical bills, this protects your retirement and your quality of life.

Medicare Insurance Plans

Medicare approves certain insurance plans for you now that you have Medicare. There are two categories of plans, both are good options, but they work differently. The options can vary based on where you live and you will be best served to meet with us for an appointment to determine how your personal circumstances will match with these plans. There are many options, choosing the right plan important.

Medicare Supplement

You may recognize the term Medicare Supplement because it has been around the longest. A Medicare Supplement policy is purchased to pay for the expenses not covered by Medicare. You will also purchase a Medicare Prescription Drug Plan to cover R/x through a separate policy.

Medicare Advantage

Medicare Advantage plans are different because the insurance company contracts with Medicare to exchange your Original Medicare coverage (Parts A, B) for an all-inclusive plan called Part C. Part C may include drug coverage and everything operates through one single policy. Medicare Advantage Part C is gaining popularity but they are not yet offered everywhere. It is important to see if you live in an area in which an Advantage plan is available.