What is Original Medicare?
Medicare was established in 1965 as a public health insurance program for the elderly. Most people who have worked or whose spouses have worked for at least ten years are eligible for Part A. Parts B and D are primarily funded by corporate, income, and excise taxes. Original Medicare is a federal health insurance program for people over the age of 65, people with disabilities such as ALS, and people with end-stage kidney disease. Part A (hospital insurance) and Part B (medical insurance) are fee-for-service arrangements. Services can be obtained from any provider or facility that accepts Medicare. After enrolling in Original Medicare, you can apply for Medicare Supplement Insurance to help cover out-of-pocket expenses. A drug coverage plan can also be purchased. You can also get your Part A and Part B benefits through a Medicare Advantage Plan, which can include or exclude drug coverage.
Does Original Medicare cover everything?
Original Medicare does not cover every aspect of your healthcare. For starters, Original Medicare does not include Part D, which provides prescription drug coverage. If you enroll in Original Medicare and choose a Medigap plan rather than an Advantage plan, you must enroll in a separate Part D plan and pay its associated monthly premiums.
How much does Original Medicare cost?
Part A monthly premiums in 2022 range from $274 to $499, depending on how much Medicare tax you or your spouse paid while working. People who purchase Part A are usually required to pay monthly premiums for Part B as well. The annual deductible for Medicare Part B in 2022 is $233.10. The average monthly premium is $170.10, which is what most people pay. If your income exceeds a certain threshold, you may be required to pay an income-related monthly adjustment amount (IRMAA).
What is Prescription Drug Plan?
All beneficiaries who choose to enroll in a prescription drug plan are covered by the Medicare Prescription Drug Plan, also known as Medicare Part D. Prescription drug coverage is available through private companies that have contracts with Medicare. Anyone with Parts A and/or B who lives in a plan’s service area is eligible to join.
How much does Prescription Drug Plan Cost?
Most drug plans charge a monthly Premium, which varies depending on the plan. This is in addition to your Part B premium. Some drug plans do not charge a premium. Your costs will differ depending on the drugs you use, the Medicare drug plan you select, and whether you receive additional assistance with your Part D costs. Having a variety of plans to choose from allows you to find one that meets your specific requirements. Choosing a plan that is right for you allows you to get the coverage you need at the best price.
For more information, contact a licensed agent here.