I will attempt to simplify Medicare, while also attempting to not put any of you to sleep. I understand if you ask about Medicare, your response will be tied to the bias of the one considered “an expert”. I will give you only the basics.
Let’s begin with “Original Medicare”. Original Medicare is Part A and Part B. You can have one without the other, but they work better together. Please keep in mind that nothing in the Medicare world is 100% definitely etched in stone. An example would be like, if you think cancer medication is covered by Drug Prescription Plan (PDP), you would be wrong, it is covered under Medicare Part B, unless you are hospitalized then it is covered by Medicare Part A.
What is “Part A”?, it is hospital expense. That means that anytime you are an inpatient in the hospital, you fall under Part A. This part does not have a monthly premium, but is does carry a deductible. At the time of this Blog, the deductible is $1556. Did I mention that is a yearly deductible, no I did not, that is because it is not. This deductible is paid when you are admitted into a hospital and it is more than three months since you were last admitted in the hospital. (I know please bare with me)
“Part B” is everything that has to do with Doctor services. Since Medicare is accepted by almost all Doctors, that means it is basically a PPO plan. Now in today’s market the premium for Part B is $170.10, (that also depends on income, which means, your premium will increase if your income is more than $91,000 a year). Along with a premium, the plan is an 80/20 plan. Than means that Medicare will cover 80% of the cost to see a doctor, and you will be responsible for 20% of the cost. With that said, if doctors feel that their services cost more, Medicare has a cap on services, which means that doctors can add a surcharge, but only 15%. If my Medicare math is correct, than Medicare is a 80/35 plan (in some cases). Then just to add a little icing on the cake, you have a $233 annual deductible.
Hope this answers any questions you have about original medicare, always contact a “Medicare” licensed agent. Not all Health and Life agents are certified to offer medicare, stay informed.