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New to Medicare
TAG Health and Life • December 12, 2020
If you are new to Medicare, the options can be confusing and seem dauntless. We are here to make the transition easy and seemless.
Medicare Options
If you are new to Medicare you have a few options when you first age in. You can choose to keep your original Medicare or enroll in Medicare Advantage Plan (also known as part C) or choose a supplement plan. Medicare is not necessarily a one size fits all. Some options are better for some than others.
Original Medicare
Original Medicare includes part A and B which covers hospital and medical benefits respectively. Under Original Medicare, the government usually pays 80% of your costs and you are responsible for the other 20%. If you choose to keep original Medicare, you will have to also enroll in a prescription drug plan to cover your medications. There is a penalty assessed to anyone who does not take advantage of these benefits when they are first eligible unless you can prove you have alternative credible coverage. Because of this, it is best to know your options ahead of time and enroll as soon as you are eligible to do so.Medicare Advantage
Medicare Advantage plans, also known as part C, are available at low to no premium cost. They often include extra benefits such as vision, dental, hearing, transportation and other benefits. These plans, although not exactly the same, operate somewhat like employer based coverage. They include cost sharing in the form of copayments, coinsurance, and deductibles. Some plans are PPO or HMO based so it is important to understand any referral or network restrictions tied to the plans. Many people appreciate the extra benefits that this plan offers and the fact that medical, hospital, prescription drugs, dental and vision are all under one plan.
Medicare Supplement
Supplement plans, just as they sound, offer supplemental coverage for your Medicare. Depending on the type of supplement plan you choose, it can cover most or all of the 20% that you are responsible for under original Medicare. These plans do come with a premium and don't include prescription drug coverage. As such, you still must buy a separate prescription drug plan in addition to the supplement plan. Although these plans can cover costs associated with your medical and hospital coverage, they do not cover any additional benefits such as dental or vision. If you would like coverage for these ancillary benefits you would have to purchase those in a separate policy.
Indemnity plans are a great way to keep your out of pocket hospital costs to a minimum. These plans generally come with a very low, affordable premium. The plans will usually help you cover up to a certain number of days per year of hospital costs. When you have a hospital stay, you can then submit a claim up the number of days you are admitted. You will usually receive a check directly in your bank account to help you pay any costs your insurance doesn't cover (ie. inpatient stay copays). Some plans even include add on's such as ambulance or ER copays. These plans are worth looking into if you're concerned about expensive hospital costs.
