If you want all the details on Medicare for Dummies without reading a whole book, you came to the right place. We’re going to skip the introduction and get right to the point. In this text, we’ll discuss how to get started with Medicare, costs, coverage, eligibility, and enrollment.
Medicare for Dummies
If you’re 65 years or older, or have certain disabilities, you likely have Medicare. When you have Medicare it’s important to understand the details of coverage.
Chapter 1: Getting Started with Medicare
Understanding the ABCD’s of Medicare is the first thing discussed in Medicare for Dummies. Some parts of Medicare are mandatory while other parts are optional.
If you turn 65 and you’re already on Social Security or Railroad Retirement Board benefits, your Part A and Part B should begin automatically. You can call Medicare if you’re unsure.
Medicare Part A
Part A is the hospital portion of your Medicare coverage. If you need inpatient care, hospice care, or a Skilled Nursing Facility Part A covers you 80% coinsurance. This means you’ll pay 20% of your Part A costs.
There is also a Part A deductible that is subject to change annually. Part A is free for most people.
Medicare Part B
Part B is your outpatient coverage for services like doctors’ office visits, preventive screenings, lab tests, outpatient surgery, and Durable Medical Equipment (DME). Also, Part B covers drugs administered by your doctor in the doctor’s office.
Like Part A, Part B covers 80% of your medical services and you pay 20% of the cost.
There is a Part B deductible that can increase on an annual basis. Also, the premium for Part B can increase on an annual basis. D
Delaying enrollment in Part B can result in a penalty if you don’t have creditable coverage.
Medicare Part C
Medicare Advantage plans are optional, these plans won’t be suitable for everyone. Part C plans combine Part A, Part B, and Part D. These plans usually include benefits like basic dental, vision, or hearing.
The coverage for Part C must be at least as good as Medicare. These plans can change benefits each year, so comparing your options regularly is necessary.
There are doctor limitations, frequent out-of-pocket costs, and these plans require you to stay within a service area.
Medicare Part D
Even if you don’t take prescription drugs, enrolling in a Part D plan when you’re first eligible will protect you from the Part D late enrollment penalty. Part D plans cover medications your doctor prescribes for you to take at home.
With Part D coverage there are different tiers depending on the medications you take. Generally, generic medications are cheaper than brand-name medications.
In some cases, step therapy, prior authorization, or quantity limits depend on the prescriptions you take. The more medications you take or the more expensive your medications are, the more likely you are to reach the coverage gap.
With Part D coverage you usually pay a copayment or coinsurance on your medications when you go to the pharmacy. Some pharmacies are cheaper to use with certain Part D plans. While you have plenty of choices, you’ll want to make timely decisions.
Chapter 2: What Medicare Covers or Doesn’t cover
Medicare covers a lot, but it doesn’t cover everything. Now you know what Part A and Part B cover from the section above, but it’s also valuable to understand what’s not covered.
Original Medicare won’t cover long-term care, vision, dental, dentures, acupuncture, hearing aids, cosmetic surgery, or routine foot care. Also, Medicare won’t’ cover stairlifts or other home modifications to accommodate a disability.
In some cases, there may be limits to coverage, like Part A has limits on hospital stays. Understanding there are limits is important because it can help you decide which supplemental insurance is going to benefit you the most.
Chapter 3: Understanding Your Medicare Costs
Part A is free to most people. The Part B premium can increase annually, currently, it’s $170.10 each month. There are deductibles as well.
The Part A deductible is $1,556. And the Part B deductible is $233. On top of these costs, you’ll pay 20% coinsurance on the total cost of medical services. Plus, if a Part B excess charge is applied, you could pay an additional 15%.
Those with higher incomes have an Income Related Monthly Adjustment Amount (IRMAA) on Part B and Part D. The IRMAA is based on your income two years ago, so if you had a substantial drop in your income, you could file an appeal to lower your amount.
Part D premiums usually range from $20-$100 depending on the coverage you need and the medications you take.
While Medicare Advantage plans have lower monthly premiums, they have higher out-of-pocket costs. Medigap plans fill the gaps of Medicare exchanging higher premiums for little to no out-of-pocket costs.
Chapter 4: How to Lower Out-of-Pocket Costs
Buying a Medigap plan can lower your out-of-pocket costs. But, if your income is lower, Medicaid could be an option for you to lower your medical expenses.
If you don’t qualify for Medicaid, you may still be eligible for extra help paying for your Part D costs.
Chapter 5: Medicare Eligibility
If you’re about to turn 65 or you’re already 65, then you’re eligible for Medicare. Also, if you’re on Social Security disability for at least 24 months or have a qualifying disability, you’re eligible for Medicare.
Those that delay Part B because they continue working and have creditable coverage through an employer will be eligible for Medicare when they decide to retire.
Chapter 6: The Right Time to Enroll in Medicare
The right time to enroll in Medicare depends on your situation. If you’re on Social Security or Railroad Retirement Board benefits, Medicare enrollment could be automatic.
The Initial Enrollment Period
During the Initial Enrollment Period (IEP), you can sign up for Medicare three months before you turn 65, the month you turn 65, or within three months of turning 65. It’s best to sign up for Medicare as soon as you’re eligible.
The Special Enrollment Period
If you delay Medicare and keep private employer health coverage that is creditable coverage, you can delay enrollment into Medicare. The employer must have more than 20 employees. When you’re ready to sign up, you’ll qualify for a Special Enrollment Period (SEP).
The General Enrollment Period
Between January 1 and March 31, the General Enrollment Period (GEP) for Medicare takes place. This is for people that didn’t apply for Medicare during their IEP or during a SEP. Those that enroll during this period will have coverage effective July 1.
How to Find Help with My Medicare
Whether you’re new to Medicare or just plain confused, working with an insurance agent can be beneficial. Call one of our Medicare experts to get help navigating your Medicare. You can compare your Medicare options online by filling out an online rate comparison form.