My name is Evan Breedlove and I have spent most of my career working with, developing and administering health insurance plans for employees and clients. For the past several years, I have been working with Medicare Plans and Senior Care. I am licensed in Oklahoma and Arkansas.
In visiting with clients, most of them will tell me that they do not understand Medicare. This has led me to work with the newspaper to present to you over the next several months, an educational series of articles that will explore and explain Medicare Plans.
As we get older, health care becomes more important in our lives. Do you understand your options? Do you have the best plan available at the best price, to protect your wealth and your retirement? This is what we will explore.
MEDICARE BASICS
Medicare is health insurance for people age 65 and older, under age 65 with certain disabilities, and any age with end-stage renal disease. The Medicare Program was established in 1965 and remained largely unchanged until 2003.
At that time, the Medicare Modernization Act was passed which authorized Medicare Part C and Part D. When you turn 65, if you have paid into Social Security during your career, you are eligible to join Medicare.
There are two parts to Medicare: Part A covers hospitalization stays and costs. The government will enroll you at $0 premium for most people. You have to pay an annual deductible of $1,632.00 before Part A begins coverage.
Part B covers doctor and outpatient visits. You will have to pay a monthly premium of $174.70 for Part B for most people and a $240.00 annual deductible before Part B begins coverage. After the deductible is met, Medicare pays 80% of charges and the member pays 20%. There is no maximum out-ofpocket limit.
You may sign up for the Medicare Program three months before you turn 65 years of age or three months after your birth month without any type of penalty. So, you have a window of seven months to register. Many times, the government will automatically register you and send you the red, white and blue Medicare Card. The Medicare Health Insurance program has helped many Americans to have health care.
However, it does have several weaknesses. It is basically an 80% – 20% plan, where as you pay 20% of your costs. It is not unusual to have medical bills that exceed $50,000 to $100,000. You have to pay 20% of these costs that are unlimited. You are required to pay deductibles and a premium for Part B. There are no extras such as Dental, Vision, Hearing, Drugs, etc. benefits. With that in mind, I would advise everyone to have additional coverage through private plans which we will discuss later (a good source of information is to go to Medicare.gov).
What if you are continuing to work after age 65 and you still have Health Insurance, maybe through your employer. You can wait to register for Medicare Part A and B. This will save you having to pay the $174.70 monthly premium for Part B. Just be sure the plan you have, has creditable coverage that includes hospital, medical and drug coverage. When this coverage ends, then you will need to register for Medicare.
Protecting your health, wealth and retirement should be a priority. Let us know if you have questions, 479-629-2476.
