For many seniors, Medicare is one of the most important investments they will rely on throughout their retirement. As a type of federal health insurance program, it is designed to provide financial support for individuals who are over the age of 65 or those you are younger but have disabilities. However, Medicare is multi-faceted with a number of different options available to individuals. When you are making such important decisions, you need to have a reliable professional by your side to count on.
Breaking Down Medicare Coverage
Medicare is broken into several parts. You can purchase some of them or all of them – depending on your situation. Here’s a look at the various components that make it up.
Listen to Larry Geobel explain how Medicare works and how you can save money with strategies that are simple, yet not many are aware of.
Traditional Medicare: Part A and Part B
Traditional Medicare has two forms, Part A and Part B. Both provide different coverage. If you are on Medicare, you will have both components of these.
- Medicare Part A is also known as Hospital Insurance. It helps to cover the costs of your stay in a hospital setting. It can also cover your stay in a skilled nursing facility such as a nursing home, as well as a hospice care facility. In some situations, it can also provide financial support for your home health care needs when they are medically necessary.
- Medicare Part B is also known as Medical Insurance. It covers the care you need outside of a hospital setting. This includes your doctor’s appointments and the outpatient care you need. It may also cover your medical supplies as well as preventative health services and screenings at various ages.
Medicare Advantage: Part C
Medicare Part C is also known as Medicare Advantage Plans. This is where you are able to get more coverage to fit your individual needs. And, this is also where our team will work carefully with you to ensure you have ample financial protection in place. There are various forms of Medicare Advantage plans including:
- Health Maintenance Organizations, or HMOs
- Preferred Provider Organizations
- Private fee-for-service plans
This type of coverage ranges widely by the provider. If you hope to choose your own doctor and medical facility, or you need specific types of treatments that may not be covered under Medicare Part A or Part B, then these plans are important. If you are enrolled in these plans, most of your Medicare services are covered through that plan. That is, the services you obtain are no longer provided through Original Medicare.
Prescription Drug Coverage: Part D
One key area of concern for many seniors is medication coverage. However, a traditional Medicare plan does not offer coverage. Instead, you need to purchase a prescription drug coverage, or Part D. You can obtain a Part D plan to add coverage to your original Medicare (Parts A and B) or to your Medicare cost plans. This is a separate policy from the other coverage you have – that’s important to know. Though it is possible to purchase a prescription drug plan through your Medicare Part C provider, you do not always have to do so.
In nearly all cases, though, it is important to learn what the plan covers and to make sure the types of medications you use are going to be covered. Our team will work closely with you to ensure this is always the case.
Medicare Savings Accounts (MSAs)
A Medicare Savings Account or MSA is another option for those who want to sidestep Medicare with a sometimes better option. This is not from Medicare directly. Rather, you will work with a Medicare-approved company to obtain a consumer-directed MSA. They work just like the Health Savings Account you may have had previously.
They have two components. The first is a high deductible health plan. You will get this through the Part C coverage options available to you. It only begins to cover your costs when your deductible is met (and, again, this is a high limit) The second component is the MSA itself. It allows you to deposit money into your account to be used for approved medical needs. The benefit here is that you can use the funds you deposit into your MSA to cover your medical costs prior to meeting the deductible.
Medicare Supplements (Medigap)
You may also hear about Medigap insurance. This is a type of policy that fills in the gaps that your Original Medicare does not cover. This includes paying for things like your doctor co-pays and your deductibles. For many seniors, this is another critical component. It helps you to meet your financial obligations without causing you financial strife.
Medigap policies are available from private insurance companies. It is important to know what they offer and what they do not cover. To obtain them, you will need to have Medicare Part A and Medicare Part B.
Long Term Care Insurance
For many people, long term care insurance is critical. Medicare does not cover long term care for seniors. Long term care insurance, on the other hand, can. This type of policy is obtained as soon as possible. It can help to cover the home care you need (such as someone coming to your home to provide you with medical or supplemental care) as well as care in a nursing home, hospice center, respite care, as well as assisted living centers. Seniors that need a bit of help at home will appreciate this key investment.
Finding the Right Medicare Supplements for You
Medicare is complex and requires a great deal of attention to ensure you get it just right. When you work with our agent and team to help you navigate the Medicare Supplements available to you, you can count on getting the very best coverage for your individual needs. Larry Goebel and the team are available to discuss all of your needs with you today. Contact us now to request a quote for Medicare supplement coverage.