Medicare Plan: What Is It And Why You Should Care

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Senior couple consulting with healthcare worker about their insurance policy while having a meeting at clinic.

According to the National Center for Health Statistics (NCHS), life expectancy at birth in the US as of the first half of 2020 was 77.8 years. While it may be good news to live longer, its downside is the need to have an adequate retirement fund. That’s because as years go by, chances are, the cost of living becomes more expensive. So, if you live longer and you have a medical condition, you might have a harder time. One way to combat this is to have a Medicare plan. That way, you can make your retirement years more manageable.  

What Is A Medicare Plan?

This is a federal health insurance plan that covers medical costs as you age. Its coverage applies to individuals with End-Stage Renal Disease (ESRD), also known as permanent kidney failure requiring a transplant or dialysis. It also applies to other persons with disabilities. And most importantly, Medicare covers people who are 65 years and older. 

What Is Original Medicare, Medicare Advantage, And Medicare Plan G?

Medicare has several parts. Part A and Part B refer to the Original Medicare. In these parts, the government pays a portion when you seek medical treatment in a facility that accepts such a plan. 

Meanwhile, Medicare Part C or Medicare Advantage refers to the benefits you can get from Parts A and B. However, you’ll get this coverage from private insurance companies; some of these companies also cover prescription drug coverage (Part D). 

In addition, you can also compare this health plan to a typically preferred provider organization (PPO) or health maintenance organization (HMO) that provides health insurance. This means Medicare Advantage has an annual limit out-of-pocket cost. But you can use this plan to have additional coverage like dental, hearing, and vision care. 

As for Medicare Plan G, you have to pay a small deductible yearly to private insurance companies. It covers 20% of the ones that Part B doesn’t. Most importantly, it provides coverage on the gaps in the Original Medicare; thus, making it known as a supplemental health plan. To get the best coverage for this plan, you may want to consider checking reviews of Medicare plan G. That way, you can weigh what other clients have to say about the various insurance companies offering Plan G.

What Are The Different Parts Of Medicare?

As mentioned, there are several parts of Medicare and these are as follows:

  • Hospital Insurance (Part A): As its name suggests, it covers expenses during hospitalization. These include home healthcare services, hospice care, skilled nursing facilities, and inpatient care in non-medical healthcare facilities as well as medical institutions. And this part is automatically added when you register in Medicare. 
  • Doctors and Tests (Part B): Unlike Part A, you have the choice not to enroll in Part B. This applies when you have your spouse’s employer or your own employer who covers you. And this coverage includes medical services like cancer treatment, cancer rehabilitation, mammograms, purchase of blood, outpatient procedures, outpatient care, medical equipment, doctor’s visits, and others. 
  • Prescription Drugs (Medicare Part D): This part is covered by private insurance companies, which applies to prescription drug coverage. 

Why Should You Get A Medicare Plan?

Aside from having the government pay for your health care costs included in Part A and Part B, Medicare is also essential because of the following:

1. For Financial Protection

As mentioned, medical costs can be a burden if you didn’t save for them. But when you have a Medicare plan, you can have a financial safety net, be it the Original Medicare, the Medicare Plan G, or the Medicare Advantage. Especially with the latter, it can cover your medical expenses for the rest of the year if your plan covers 100% of your medical needs. This is known as the annual out-of-pocket limit. 

In layman’s terms, an out-of-pocket maximum refers to the annual covered services you have to pay. The payment includes coinsurance, copayments, and deductibles in order for the health plan to pay for your medical expenses. 

2. To Have Extra Benefits

While the Original Medicare is limited, Medicare Advantage allows you to enjoy extra health care benefits. For instance, you can have paid eye exams and glasses and other fitness benefits. However, these additional benefits rely on your provider

3. To Enjoy Affordable Health Care Coverage

Most importantly, you can enjoy an affordable way to cover your future medical fees. You’re more likely to pay an estimate of USD$135.5 per month for the out-of-pocket amount for Part B. And when you compare it to the cost of prescriptions or operations, the savings you can get are huge. 

Conclusion

While you think you may not need a health plan if you’re a healthy young adult, you may still need Medicare. It’s because you don’t know when an illness or medical condition will hit you. And you can reap more of its benefits when you age. By then, you won’t have to worry much about your healthcare needs because you know that this health plan can cover your medical needs.