Medicare Parts Explained

By |2020-04-16T01:08:10+00:00April 15th, 2020|Categories: Blog and News, NHIA Blog|Tags: , , |

Medicare Parts can be difficult to understand. That’s why we are including it in our back to the basics month. Seniors all over the states participate in the Medicare medical plans. But, sometimes they don’t fully understand what is actually covered under these plans. In this article, we will explain the Medicare parts and talk about what is included in each.

Do you or a loved one have Medicare? Do you assist in medical care for an elder who has Medicare? Getting old and wondering what Medicare is? At the risk of sounding like a late night infomercial, these questions are actually more important than you think. Medicare is insurance coverage and benefits intended to help provide coverage for senior citizens. There are four Medicare parts to explain. Let’s get started.

This article does not cover all terms, conditions or benefits of the Medicare coverage system. For a full explanation of a policy, or if you are in need of insurance, please call us at National Health Insurance Agencies. One our policy service members would be happy to assist you.

Part A

Medicare Part A is hospital coverage. When you are accepted for Medicare, you automatically get Part A coverage. This part covers hospital stays, hospice care and nursing care related to rehabilitation even if it has to be completed in a nursing home. A semi-benefit of this plan is that there is no monthly premium. However, if you are unfortunately admitted to a hospital often, it may cost more from you than you expect. A high deductible is part of your out-of-pocket costs for this plan. The deductible changes each year, but can be between one to two thousand dollars per hospital admittance. Afterwards, Part A pays for nearly all other charges associated with your stay for 60 days.

Part B

Medicare Part B refers to doctor’s services and outpatient care.  Firstly, this part covers things like lab work, screenings and medical equipment. However, there are more costs associated with Part B including a monthly premium and an annual deductible. Many people choose to weigh their options with this plan despite its benefits. Speaking with an insurance agent about Part B coverage may help you make an informed decision.

Part C

Medicare Part C is also known as the Medicare Advantage (MA). This plan is often offered by private insurers managing Medicare coverages for seniors. Part C includes the benefits of A and B (which you’ll have to pay for) as well as the definition of a plan type. Meaning, Part C lumps A and B together with extra benefits that come with private health insurance. Part C coverage varies with the coverage provider. It is important to take time to research both the insurer and coverage options before making a selection.

Part D

Medicare Part D is most notably called the Prescription Drug Plan. As noted, this plan pays for some or all of your prescription drug costs. This plan is purchased through a private insurer. Some insurers may even include it in Part C. Coverage options and insurers should be thoroughly researched. There are several rules or exclusions that are associated with this plan. For more information, click here.

At National Health Insurance Agencies, we care about your health and safety. For assistance finding your best coverage, contact us today. Afterhours? Request a free quote!

Tips to Help Minimize Medicare Costs

By |2018-10-16T18:45:43+00:00February 18th, 2019|Categories: Blog and News, NHIA Blog|Tags: , |

NHIA Blog header

One of the lessons learned by so many newly retired Americans is just how expensive post-retirement healthcare coverage can cost. It’s one of the largest retirement expenses that you will face on retirement and a reason we see so many people working past the age of 65. In fact, most couples spend an average of $400,000 total on their healthcare after retirement. Needless to say that finding ways to save money in this area can be a critical part of your life after retirement.

The first thing you have to know is that you cannot do anything about the rising cost of healthcare every year so it’s best not to let it drag you down. Let’s focus on factors that you can control.

One factor that everyone must face is that the rules for Medicare are convoluted and complex. That means you will need to pay close attention to detail in order to maximize your savings.

Medicare Timelines that you Must Know

Timing can make a huge difference! Individuals will normally be eligible for Medicare upon reaching the age of 65. However, what a lot of people don’t realize is that the window to sign-up for Medicare will open three months before the month of their 65th birthday. Enrollment then ends three months after their 65th birthday.

Most people wait until they turn 65 to apply and end up pushing their deadline because of the time it takes to put through the paperwork. With that said, it’s also important to understand that while you can decline Part B of the coverage, there are penalties that ensue as a result of declining that coverage. Every year that you are eligible for Part B but do not enroll, you will incur a 10% penalty that is cumulative. Furthermore, applying for Part D late will result in a 1% monthly penalty. Both of these penalties can add up quickly.

HSA Becomes Complicated

Enrolling in Medicare Part A will make you ineligible to put money into an HAS. However, you will still be able to withdraw funds from this account tax-free.

What many people overlook is that when you start collecting Social Security benefits, you are automatically enrolled in Medicare Part A. That means you have to stop making any contributions to your HSA accounts. But if you want to keep working after 65, you can decline all Medicare coverage.

Income-Based Surcharges

At the time of this post, there are income-based rules that will increase the premiums for Medicare Parts B and D if your adjusted gross income goes over a specific amount. Furthermore, you will have a two-year look-back period that will be used to decide whether or not you have to apply income-based surcharges. That means wages you earned two years ago will determine your current income-based surcharges.

Conclusion

The rules surrounding Medicare are really complicated and the only way you can save money is to learn all of the language. Study your plan carefully and plan accordingly. You need to have a high attention to detail, otherwise you will end up adding to its already high cost.

This Is A Custom Widget

This Sliding Bar can be switched on or off in theme options, and can take any widget you throw at it or even fill it with your custom HTML Code. Its perfect for grabbing the attention of your viewers. Choose between 1, 2, 3 or 4 columns, set the background color, widget divider color, activate transparency, a top border or fully disable it on desktop and mobile.

This Is A Custom Widget

This Sliding Bar can be switched on or off in theme options, and can take any widget you throw at it or even fill it with your custom HTML Code. Its perfect for grabbing the attention of your viewers. Choose between 1, 2, 3 or 4 columns, set the background color, widget divider color, activate transparency, a top border or fully disable it on desktop and mobile.
Go to Top