Medicare Health Insurance Can Save Seniors Money

In 1965 the original Medicare program was passed. Medicare had two parts then. Stays in a hospital for more than 72 hours were covered by Part A. Other medical insurance coverage costs were covered in Part B. Further down the road Part C and Part D were added to cover other health costs.

Medicare’s Part A will cover a hospital stay of at least 72 hours, this is measured by the time of hospital admission and the time of release. Part A will also pay for a stay in a nursing home (as long as it is related to the aforementioned hospital stay) as long as there are skilled nursing personnel present. Part A of Medicare is offered for free, paid for by periodic payroll tax deductions during the patient’s working career.

Part B is an optional benefit of Medicare. Pat B includes many medical services and medical providers not covered by Part A. This means that lab tests, visits to the doctor, particular outpatient procedures, flu vaccinations and more are covered by Part B of Medicare insurance.

Part A is completely free, however, Part B requires a monthly premium. When you are notified that you can have Medicare insurance just before you turn 65, you must choose whether or not you would like Part B coverage. You must pay $88.50 for Part B premiums as of 2006.

In 1997 a “Part C” was introduced that allowed Medicare members to receive medical care through private insurance plans. These plans would replace Part A and Part B of Medicare coverage. In 2003 these private plans were regulated and collectively called Medicare Advantage (MA) plans.

Part D Medicare was instituted on January 1st, 2006. Those eligible for Parts A and B were automatically approved to be in the Part D prescription drug plan. Part D allowed members to have one of several prescription drug plans.

Part D also lets you pay less for your prescriptions. A monthly premium, just like Part B, is required to participate in Part D. Each private insurance plan had separate restrictions and therefore caused a lot of confusion among everyone trying to select a plan.

Some government agencies predict that the Medicare insurance program may run out of money around 2018. It seems that workers are retiring and using Medicare insurance faster than current workers are paying into the Medicare insurance bank account.

In 2005 it was estimated that Medicare boasted a membership of 42.5 million people. Once the Baby Boomer generation completely retires and thus enrolls in Medicare, which will happen around the year 2031, it is estimated Medicare will see a staggering 77 million members.

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