Medicare Insurance Plans

Your Medicare Insurance Plan Benefits: The old age money saver

In 1965 the first Medicare benefit insurance plan was created, and was then made up of two sections.  Part A concentrated on Medicare insurance coverage for hospitals.  Part B, looked more at the topic of coverage for medical insurance. Parts C and D were included later to help with additional health issues.

The Medicare program is a U.S government health insurance program for senior citizens at least 65 years of age or the younger generation if they meet certain disability criteria. When Medicare was first created in 1965 it consisted of two Parts. Part A was for hospital insurance. Part B was for medical insurance. Parts C and D were additions later made due to health issues.

Part A

There is no premium for Part A as this has been funded by the beneficiary and employee through tax deduction of the beneficiary’s wages. Part A covers stays in hospitals which were 72 hours or more. Insurance coverage depended on arrival time and when the patient was released. The next step down the ladder means it would pay for time spent in a nursing home if it was directly connected to the hospital stay and if the nurses and supervisors were specifically skilled.

Part B

Part B comes as an optional coverage which commits members in to paying a monthly premium. When the beneficiary is automatically enrolled into Part A, they will have to decide if they want to be included in Medicare Part B as well. Part B insurance coverage pays for service and medical providers that Part A would not reimburse. Medicare Part B can also cover flu vaccinations, doctors visits, X-rays, lab tests, outpatient procedures and many more. The monthly premium for Part B was around $88.50 in 2006.

Part C

At the beginning of 1997 Part C was passed as a further option for Medicare members. Part C could replace Part A and B so that members could receive medical services through private insurance companies. In 2003 the private part was altered and named Medicare Advantage also known as MA Medicare insurance parts.

Part D

Medicare Part D was commissioned on the 1st January 2006. If the person was eligible to receive Part A and Part B then it would be possible to apply for Part D, a new prescription drug program. Part D made it possible for existing members to receive prescription drugs through private insurers. Like Part B the member would have to commit to monthly premium payments to receive Part D, if they wanted to receive the benefit of less prescription costs. A big problem with Part D is that there are a lot of restrictions for the various private insurance prescription drug parts leading to a large number of bewildered members.

It is estimated that by 2018 Medicare could actually go bankrupt. With better medical services there is a much higher percentage of people living to retirement. This puts a great deal of pressure on the Medicare program as more people are retiring than workers are getting taxed for.

The figures for 2005 were around 42.5 million members enrolled in Medicare insurance. By 2031 it is estimated this number will explode to around 77 million members! This is said to be partly from the “baby boom” generation all retiring and joining Medicare around the same time. Medicare is a handy insurance program for the elderly now, but will it still be around for the younger generation?

Entry Filed under: Benefits Explained

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