VOLUNTEERS ASSISTING SENIORS
Non-Profit Agency Created in 1977 Programs:
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What is Medicare & Who Runs the Medicare Program?
Medicare is the federal health insurance program for people age 65 or older. It also covers persons under age 65 with disabilities and people with End-Stage Renal Disease (ESRD)
The Centers for Medicare & Medicaid Services (CMS) is the Federal agency that runs Medicare. CMS is part of the U.S. Department of Health and Human Services (HHS)
Today’s Medicare is about CHOICE. Original Medicare Plan
Fee-For-Service (pay-per-visit) health plan that lets people go to any doctor, hospital or other health care provider who accepts Medicare. Medigap policies are Medicare supplement insurance sold by
private insurance companies to fill “gaps” in Original Medicare Plan coverage.
Medicare Advantage Plans Health Plan options that are approved by Medicare but
run by private companies. They are part of the Medicare Program and sometimes called “Part C”.
Prescription Drug Coverage Open to everyone with Medicare, but you must join a
drug plan to get this coverage.
Medicare has three parts
Part AHospital Insurance
Most people do not have to pay for Part A.
Part BMedical Insurance
Most people pay monthly for Part B.
Part DPrescription Drug
InsuranceProvided through private
Part A Inpatient Hospital Stays Skilled Nursing Facility (SNF) Care Home Health Care Hospice Care
Original MedicarePart A Beneficiary Costs in 2007
In-Patient Hospitalization: $992. deductible for a hospital stay of 1-60 days $248. per day copayment for days 61-90 $496. per day copayment for days 91-150 All costs for each day beyond 150 days Blood deductible -- first three pints
Skilled Nursing Facility Costs: Days 1-20: Medicare pays 100 (approved) Days 21-100: $124. copayment per day Beyond 100 days: Beneficiary pays all costs
Original MedicarePart A Beneficiary Costs in 2007
Home Health Care: Medicare pays 100% for Home Health Care covered
services – You pay 0%. 20% of the Medicare-approved amount for covered
Durable Medical Equipment Hospice Care:
Medicare pays 100% for services – You pay 0% Beneficiary pays:
No more than $5 for each prescription drug and other similar products
5% of Medicare approved amount for inpatient respite care
Part BMonthly Premium – Generally, $93.50 in 2007 Doctors Services Outpatient Hospital & Emergency Room Durable Medical Equipment Clinical Lab Services Other Services & Supplies
Original Medicare - Part BBeneficiary Liability
Yearly Deductible - $131.00 in 2007
Coinsurance Amounts 20% of Medicare approved amount for physician services; 50%
of Medicare approved amount for outpatient mental health services; Set co-payment amount for hospital outpatient services
Excess Charges generally limited to 15% over Medicare approved amount;
exceptions include durable medical equipment, flu shots, & some drugs
Part B Preventive Services Available to Help you Stay Healthy “Welcome to Medicare”
physical exam Bone mass measurement Cardiovascular screening Colorectal cancer screening Diabetes screening,
services, and supplies
Glaucoma screening Pap test and pelvic exam
with clinical breast exam Prostate cancer screening Screening mammogram Smoking cessation
counseling Vaccinations (shots)
Medicare Supplement Insurance Sometimes referred to as a “Medigap” Policy, this is health
insurance sold by private insurance companies to fill “gaps” in Original Medicare Plan coverage.
Medigap policies help pay your share (coinsurance, copayments, or deductibles) of the costs of Medicare-covered services
Medigap policies DO NOT work with Medicare Advantage plans
Insurance companies in NE can sell you a policy from 12 “standardized” Medigap policies (Medigap A through L). These Medigap policies must all have specific benefits.
Costs vary by policy and company. An employer/union/retiree plan may offer similar coverage
Medicare Advantage Basics A unique alternative to Original Medicare
Sometimes referred to as Medicare + Choice or Part C Approved by Medicare and administered by private
companies, so MA Plans provide ALL of your Part A (hospital) and Part B (medical) coverage and must cover medically-necessary services.
You must have Medicare Parts A & B to join Operates under an annual contract with Medicare Usually includes coverage for prescription drugs (MAPD) May offer extra benefits, i.e. vision, hearing or dental care Must accept all Medicare beneficiaries, even those on
Medicare due to disability, and cannot have a waiting period for pre-existing conditions. The exception are those with End-Stage Renal Disease (ESRD)
In a Medicare Advantage Plan, be aware that….
You must continue to pay Part A (if necessary) and Part B premiums Some Medicare Advantage Plans charge a monthly premium in addition
to your Part A/Part B premium. Costs vary by plan and the services you use.
You must live in area where plan is offered You are responsible for the co-payments
Plans determine their own rates & charges.Co-pays vary according to plan
Medigap (supplement) Plans do not work with Medicare Advantage Plans Your current provider may or may not accept the plan you
choose as these plans often have networks Doctors or hospitals are not required to accept payment from MA plans.
If the provider does NOT accept the plan, you may be responsible for the entire payment!
Important MA Considerations: Does your provider accept the plan?
You may have to see doctors who accept the plan or go to certain hospitals to get covered services—are you willing to change?
In most Medicare Advantage Plans, if your plan offers Medicare prescription drug coverage and you want drug coverage, you must get it from your plan. Are your prescriptions covered under this plan?
Can you cover the maximum out of pocket? i.e. in-patient hospital co-pays
Rules for enrollment and disenrollment Annual Co-ordinated Election Period (AEP)
November 15 through December 31—Coverage begins January 1
Medicare Advantage open enrollment period January 1 through March 31 each year—lateral move only
Twelve Month Trial Run Can leave the MA plan at any point during
first 12 months If enrolled when turned 65:
Can go to Original Medicare and buy any Medigap plan A-L (OR)
If left Medigap and original Medicare: Can return to Original Medicare and get their Medigap
policy back, if still available, or pick another one (A,B,C,F,K or L) from any issuer
Medicare Prescription Drug Coverage--Part D--
Began January 1, 2006 Offered by private plans approved by Medicare Available for all people with Medicare
Part A, Part B, or both Must join a Medicare drug plan to get coverage
Part D Enrollment & Penalties Initial Enrollment Period (IEP)
7 months Starts 3 months before month of eligibility
Annual Coordinated Election Period (AEP) Special Enrollment Period (SEP) People who wait to enroll may pay penalty
Additional 1% of national base premium for every month eligible but not enrolled
November 15 – December 31 every year People who don’t have a Medicare drug plan can
enroll People who currently have a Medicare drug plan can
switch Changes are effective January 1, 2008 Special Enrollment Period (SEP) may apply in
Annual Coordinated Election Period (AEP)
Annual Notice of Change All Part D plans send to all members
By October 31, 2007 Will include information for 2008
Summary of Benefits Formulary Any changes
Basic Standard Coverage
2008 BASIC STANDARD COVERAGE
You Pay MedicarePays
Your Total Out-Of-Pocket Costs Per
Deductible $0- $275 100% ($275) $0 $275
Coinsurance $276-$2,510 25% ($558.75) 75% ($1,676.25)
5% 95% $4050. + 5% of costs above $5,726.25
*Does not include premium cost
Part D Plan Finder Tool and MyMedicare.gov
Both available at: www.medicare.gov
Part D Plan Finder Tool Allows beneficiaries to personalize their search for
prescription drug coverage that best meets their needs Compare plans Use preferences to narrow results Provides information on Prescription Drug Plans &
Medicare Advantage Prescription Plans MyMedicare.gov
Secure online service for accessing your personal Medicare information
Limited Income and Resources? What is Medicaid? What is the Medicare Savings
Program? What is Medicare’s Extra Help?
Low Income Subsidy
Reevaluation and Enrollment Events Begin November 16th, 2007 Call VAS office for list of events close to you Can come into VAS office for one-on-one
1941 South 42nd Street, Suite 502 The Center 444-6617