The Truth About Medicare and Medicare Supplements.

The Truth About Medicare and Medicare

Supplements

What is Medicare???

Medicare was signed into law on July 30, 1965. In general, all persons 65 years of age or older are eligible for Medicare.Since then the primary benefits for Medicare have been Part A Hospital Insurance, and Part B for Medical Insurance. Part A and Part B benefits

have remained fundamentally the same

since 1965.

How Medicare Works…

If you are approaching age 65 and you already receive Social Security you will be automatically enrolled in Medicare Parts A and B when you turn 65.

Approximately 3 months prior to your 65th birthday, Medicare will send you an enrollment package containing general information about Medicare, a questionnaire and your red-white-and-blue Medicare card.

How Medicare Works…

Original Medicare is a fee-for-service plan that is managed by the Federal government. You can go to any doctor or supplier that is enrolled in Medicare and accepts new Medicare patients.

You may be responsible for any deductibles or copays under Original Medicare Part A or Part B.

Medicare Original Benefits…

Part A is hospital insurance that helps cover inpatient care in hospitals, skilled nursing facility, hospice, and home health care. Most people don’t pay a Part A premium.

Part B helps cover medically-necessary services like doctors' services, outpatient care, home health services, and other medical services. Most Medicare beneficiaries will pay $96.40 or $110.50 Part B premium amount in 2011.

These Original Medicare benefits meet or exceed health care benefits offered to most individuals prior to age 65

Medicare Supplements…

A Medigap policy (also called “Medicare Supplement Insurance”) is private health insurance that is designed to supplement Original Medicare.

Every Medigap policy must follow Federal and state laws designed to protect you, and the policy must be clearly identified as “Medicare Supplement Insurance.

Cost is usually the only difference between Medicare Supplement policies with the same letter sold by different

insurance companies.

Medicare and Your Supplement

You must have Medicare Part A and Part B to buy a Medicare Supplement policy

You can buy a Medicare Supplement policy from any insurance company that’s licensed in your state to sell one.

Any standardized Medicare Supplement policy is guaranteed renewable even if you have health problems. This means the insurance company can’t cancel your policy as long as you pay the premium.

Medicare/Medicare Supplement Cost

Example: Age 65 Plan F femaleMedicare Part A FREEMedicare Part B premium $110.50Medicare Supplement F* $130.00Total premium $240.00

Plan F contains comprehensive coverage for everything Medicare Insurance doesn’t cover as long as the charge is approved by Medicare (other plans may be available with lower premiums)

*average premium based on preferred rates

What Medicare Says…

1. Your Medicare health or prescription drug plan can change how much it costs and what it covers each year. Even if your plan’s cost and coverage stay the same, your health or finances may have changed. Review your plan each year to make sure it will still meet your needs. If you’re satisfied with your current coverage, you don’t need to change plans.*

2. Cost is usually the only difference between Medicare Supplement policies with the same letter sold by different insurance companies**

*www.medicare.gov/publications/pubs/pdf/10050

**www.medicare.gov/publications/pubs/pdf/02110.pdf

What this means for you…

1. Prior to age 65 you could not purchase this package.

2. Medicare and the right Medicare Supplement is the most comprehensive health care coverage available.

3. As long as you pay your premiums, the company cannot cancel your coverage.

4. Regarding our recent health care overhaul, there are no cuts to the traditional Medicare benefit. Medicare recipients actually received additional benefits in 2011!!!

Medicare, Your Entitlement, Your Choice

As a taxpayer, once you turn age 65, you are entitled to health insurance benefits under Medicare, and the choice to supplement your Medicare benefits through private coverage.Making the right choice is one of the keys to a successful retirement.

Choosing a Medicare Supplement that’s right

for you puts you in control of your health

care!!!