Medicare is a federal program to help older Americans and some disabled Americans pay for the high cost of health care. However, Medicare was never intended to cover all your health care costs. So even if you’re covered by Medicare, you are still responsible for a large portion of your health care costs.
What Medicare Doesn’t Cover
Medicare does not cover all health care costs. Medicare coverage consists of Part A (which covers hospital and skilled nursing facility care), and Part B (which covers doctor bills and other medical expenses).
Even with Medicare Part A and Part B coverage, you’re responsible for some out-of-pocket expenses including:
Part A hospital deductible ($992)
Copayments for hospital stays over 60 days
Care in a skilled nursing facility after 20 days
Part B deductible ($131)
Twenty percent coinsurance for doctor bills and other medical expenses
Without Medicare Supplement insurance, your out-of-pocket costs could add up to more than $48,100 this year alone.
Supplementing Medicare
Private insurers offer Medicare Supplement insurance to fill in the gaps for hospital and medical expenses Medicare does not pay.
By law, Medicare Supplement insurance is standardized into twelve plans (Plans A through L). That means Plan F from one company must include the same benefits as plan F from another company. While the benefits must be the same, each company’s rates, reputation, membership features and quality of service can vary.
Will You Be Eligible for Medicare Soon?
If you’re nearing your 65th birthday, it’s time to start planning for your new health care coverage needs.
Three to six months before your 65th birthday:
Become familiar with Medicare, what it covers and what it doesn’t cover.
Research the Medicare Supplement plans that can help fill the cost gaps in Medicare.
Make sure your doctor participates in Medicare.
One to three months before your 65th birthday:
Enroll in Medicare: Although enrollment in Medicare Part A is automatic, it’s a good idea to apply by calling your local Social Security office.
You can apply for Medicare as early as three months before your 65th birthday.
Your application can be taken at your local Social Security office, over the phone or online.
Medicare Part B is optional*, but you should not turn it down unless you have primary insurance from another source.
Consider a Medicare approved prescription drug plan like Blue MedicareRx for your prescription drug needs.
Consider which Medicare Supplement plan you will choose to help cover Medicare’s cost gaps, you should have a solid plan in place by your 65th birthday.
*Part B is required for Blue Cross and Blue Shield of Illinois Medicare Supplement insurance.
On your 65th birthday
Celebrate! If you’ve followed these simple steps, you’ll have solid health care protection in place to help keep you secure and reduce your out-of-pocket expenses.
Why You Need Medicare Supplement Insurance