For many people, dealing with Medicare is confusing. Some of the typical questions are: “How does Medicare work?” “What am I responsible for and what is the government responsible for?” “What are my deadlines?”
Original Medicare consists of several parts. Part A is hospital insurance, helping to cover the expenses of inpatient care in hospitals, skilled nursing facility care (custodial and long-term care are not included), hospice care and home health care. Part B is medical insurance. Part B assists with the costs of outpatient care, home health care, services
Part B is medical insurance. Part B assists with the costs of outpatient care, home health care, services from doctors and other health care providers, durable medical equipment, and some preventative services.
Part C is the Medicare Advantage plan, which is either an HMO or PPO. This plan includes both Part A and Part B, and the coverage is provided through private insurance companies that have been approved by Medicare.
Part D is Medicare prescription drug coverage so that you can obtain prescription drugs when you need them.
With these plans, the premiums, copayments and coverages vary, depending what plan you choose. However, there is a circumstance where putting off getting Part B and Part D could be an advantage for you.
For example, if you have an HSA (Health Savings Account) from your current employer and you want to keep enjoying an HSA’s tax advantages, you have the option of delaying enrollment in Part B and Part D at age 65. However, it’s only wise to delay if you meet the following criteria:
- You currently have primary coverage through a company with 20 or more employees (or your spouse’s insurance covers you).
- The coverage you have now covers what you need, including prescription drugs.
- You can obtain written proof that your employer will cover your outpatient costs first. (You must show this evidence of “creditable coverage” to Medicare later.)
With Medicare, it’s important to carefully assess your medical needs as well as your income now and in the future. Tepsick Insurance can act as your experienced guide through the Medicare maze – we’ll help you choose the plan that is best for you.
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