When you worked for an employer, they typically offered you and your family health insurance while the cost is shared by the company and you. One day you retire, and long gone are the days where employers continue covering your health insurance once you have left the building.
Medicare is a federal health insurance program for people over 65, people younger than 65 with certain disabilities, or people with end stage kidney failure requiring dialysis.
You will pay a small portion of your Medicare coverage which is automatically deducted from your monthly social security check. Medicare has several parts covering specific health needs.
Medicare Part A (Hospital Insurance)
- Inpatient hospital stays
- Rehabilitation in a skilled nursing facility
- Hospice Care
- Home Health
*Medicare CAN pay up to 100 days for rehab, it does not mean Medicare WILL pay all those days. This is where many people find themselves in trouble as they were expecting all that time for themselves or a loved one for recovery.
The reality is that Medicare is insurance, and like all insurances, they want to pay as little as possible! Therefore, when a person receiving rehab hits a plateau, is able to walk 150 feet, or the patient refuses therapy, then Medicare will discharge from said rehab.
Medicare Part B (Medical Insurance)
- Doctor’s services
- Outpatient care
- Medical supplies
- Preventative services
Medicare Part D (Prescription Drug Coverage)
- Covers most drugs
- Shots and vaccines
Part A is typically free to most people contingent upon meeting criteria of paying Medicare taxes while working. If you do not qualify for free Medicare Part A, you can purchase the coverage.
Part B is a standard amount which changes each year if your adjusted gross income for the past two tax years is above a certain amount you may also be required to pay an additional premium. For 2020 the standard premium is $144.60.
You can also choose Original Medicare or a Medicare Advantage Plan, both change each year thus you should reevaluate your current healthcare costs compared to the new year plans rolling out. It is extremely helpful to work directly with a Medicare Specialist that can advise you on how to get the most coverage for your dollar.
IMPORTANT! Medicare does NOT pay for long term care! The only insurance that covers long term care such as assisted living, memory care or a residential care home, is long term care insurance.
