subject: What Medicare Does for You - Updated for 2011 [print this page] What Medicare Does for You - Updated for 2011
Medicare is a government regulated health care program for those 65 or older. You need to understand how it works. Here's an overview with some 2011 updates.The Medicare program has 4 parts. Each part has its own concern: * Part A - hospital insurance - it's free if you contributed enough FICA over the years* Part B - medical insurance (this is optional)* Part C - additional insurance coverage* Part D - offers voluntary prescription drug coverage offered via private vendors
Parts B-D costs you depending on your income and choice of 'supplemental coverage' under each. It's important to realize that Medicare doesn't cover hearing aids, dental care, vision care, or long-term care. It also won't provide coverage for health care required while you are traveling outside of the U.S. Part A covers costs for your stay in hospital and some follow-up costs to your stay. It pays some out-patient medical services, including medically necessary equipment and supplies, home health care, and physical therapy. Though generally free, if you do have to pay, there are deductibles hospital stay deductibles of $1132 in 2011.Part B is optional and isn't free. Your Part B monthly premium is automatically deducted from your Social Security check. For 2011, it's $115.40 each month. High earners (170k plus for a married couple) will pay even more. This covers certain out-of-hospital treatments and is pays doctor's bills for treatment in or out of the hospital. It covers medical expenses like equipment and tests when you're not in the hospital. What is free is a 'Welcome to Medicare' screening exam you should take within the first 12 months of signing up. And under the new health-care law, Medicare users are entitled to free annual wellness check-ups including preventive screenings such as colonoscopies and mammograms too.You can get additional insurance coverage to pay what both Part A and B don't cover. You still have to pay the Part B monthly premium, though. And then pay for any additional insurance your get to cover what Part B doesn't.And still to cover what's left, you can find more coverage under part C.Part C: Here, private insurance companies offer Medicare Managed Care and Private Fee-for-Service plans. The Managed Care plans come under either preferred provider organizations (PPOs) or health maintenance organizations (HMOs) - the latter is generally less expensive of the two.Medicare Part D requires you to join a Medical Drug Plan to pay for your prescription drugs. But, again, whatever you pay in this plan still requires you to pay your Part B premium. High earners will also pay a premium surcharge for Medicare Part D. Choose your MDP based on the types of prescriptions it offers, its costs, and the convenience of its pharmacies to you. Realize that you can switch your plan each year from November 15 to December 31.
