Part A: Hospital Insurance
Part A covers the costs of being in a medical facility/hospital. Medicare Part A is no cost to you as long as you or your spouse worked at least 40 quarters (10 years) in the United States and paid into Medicare.
Part B: Medical, Doctors & Tests Insurance
Part B covers doctor’s services, durable medical equipment, outpatient care, lab tests and radiological testing, such as MRIs and CT scans. With Part B you pay a monthly premium. You are required to enroll in Part B if you don’t have “creditable coverage” from another source, such as an employer or union plan. If you do not have creditable coverage, you may have to pay a penalty if you don’t enroll when eligible.
Parts A & B = Original Medicare
Parts A&B are considered original Medicare, and will cover 80% of your Medicare covered medical expenses. You are responsible for the other 20% of the costs of medical services.
But beware! There is no CAP on your 20% out-of-pocket expense. (Example: If your medical bills for a year were $100,000, you would be responsible for $20,000.)
Part D: Prescription Drugs
Part D (also known as Prescription Drug coverage), is administered by private insurance companies. Part D is required unless you have a prescription drug plan from another source, such as VA benefits or Tricare.
Parts A & B DON’T Cover:
Parts A & B do not cover routine eye or dental costs, dentures or implants, cosmetic surgery, acupuncture or hearing aids. But the largest and most important item that original Medicare DOES NOT cover is Long-Term Care. If you are diagnosed with a chronic condition that requires ongoing personal-care assistance, the kind that requires in-home or assisted-living facility help, Medicare will cover none of those costs. This includes help with everyday activities such as, bathing, eating, dressing, ambulating from a bed to a chair or from a chair to a bed, etc. (unless prescribed by your doctor and performed in a Skilled Nursing Facility, usually after a hospital stay). Other things that are not covered are cooking, cleaning, grocery shopping or laundry.
According to Medicare.gov, at least 70% of people over age 65 will need Long-Term Care at some point in their lives. To take care of these expenses, you should look into a Long-Term Care policy, which may be in the form of a life insurance policy with a Long-Term Care rider (add-on), a specifically designed Long-Term Care annuity (versus an annuity with a chronic care rider) or even a life settlement, which will convert an old life insurance policy into a set amount of funds.
For more information on Long-Term Care coverage, please call me at (877) 777-7055.
