As the baby boomers get older now, many people are reaching the age of 65, which is when they qualify for Medicare. There are four categories of Medicare coverage that are called “Parts,” and with a letter, as in Part A, B, C, and D. The decisions about Medicare are complicated. It is best to work with your agent at Family Insurance Associates, serving Ruidoso, NM, and the surrounding area to understand your choices better.
Here are the usage areas of the categories:
- Part A — Hospital Costs
- Part B — Medical Costs
- Part C — Medicare Advantage
- Part D — Medicare Prescription Drug Coverage
Americans, who paid enough payroll taxes (for more than 30 quarters) during their lifetime, qualify for the free Medicare — Part A. This is also called “premium-free Part A.” All you need do is apply for Medicare when you turn 65 to get these benefits.
If you are admitted to a hospital, you will pay a $1,408 deductible (as of February 2020) for each insured period of a year. There are no co-insurance payments (co-pays) for the first 60 days of your hospital stay.
From day 61, you will pay a co-pay of $352 per day up to 90 days. From day 91, you will pay a co-pay of $704 per day for up to the maximum lifetime reserve days of a total of 60 days. Lifetime reserve days are those days that exceed the period limits reserved for your entire lifetime. After you use up your 60 lifetime reserve days, you have to pay for all hospital costs.
Medicare Supplemental Insurance
The other Medicare coverage offered under Medicare Part B, C, and D requires that you pay a monthly premium to get the benefits. The premium for Part B, which allows you to see a doctor, who will accept the Medicare-approved amount for certain services, starts at $144.60 (as of February 2020) and goes up according to your income. The deductible is $198. The co-pays are usually 20% of the cost of medical services.
The monthly premiums and coverage for Part C and D vary by the plan. There are many programs to choose from for Part C and Part D. These are all called Medicare supplemental insurance. Contact your agent at Family Insurance Associates in Ruidoso, NM to discuss Medicare and Medicare supplemental insurance and to get a quote.