Deficit Panel Moves Deliberations Behind Closed Doors

The 12-member ‘super committee’ held a private meeting Thursday and emerged with few details, though a co-chair acknowledged that their work won’t be easy. Meanwhile, President Barack Obama and House Speaker John Boehner, R-Ohio, are signaling the different courses they want to see the panel follow.?Also, congressional Democrats are getting increasingly worried about what might become of Medicare and Medicaid.

ABC News: Deficit Super Committee Breakfast Club
For its third meeting, the 12-member, deficit-reduction committee gathered in the U.S. Capitol today for an early, closed-door breakfast over orange juice, coffee, pastries and bacon to talk about how it can achieve a plan for deficit reduction by Thanksgiving. After emerging from the meeting, the co-chairs of the debt committee were scant on details about what nitty-gritty was discussed. Rather, they seemed to use this morning’s breakfast as more of a getting-to-know-you meeting, even as all the members have called for quick work with a November deadline and the threat of the trigger options looming (Miller, 6/15).

The Associated Press/MSNBC: Super Committee Meets In Private To Talk Deficit Reduction
Members of Congress’ debt reduction super committee said Thursday that their assignment of finding ways to reduce government red ink won’t be simple. Emerging from a private breakfast meeting among the panel’s members, Rep. Jeb Hensarling, R-Texas, told reporters: “We know that it will not be fun. We know it will not be easy, it will not be popular with any current political constituency” (9/15).

Politico Pro: Dems Worry Over How, Not How Much In Cuts
Democrats say they are resigned to the fact that Medicare and Medicaid won’t go completely unscathed as part of Congress’s latest effort to cut federal spending. Their question is not how much, but simply how, the programs get squeezed. “I don’t think the number is important,” Rep. Bill Pascrell of New Jersey said, reacting to reports that President Barack?Obama will seek at least $340 billion in savings from the two programs. But where he gets the money and who it affects is very significant. The comments come just days before the president will take another swing at lopping trillions of dollars off the national deficit over the next decade. Details remain scarce, but administration officials this week said his proposal could include $340 billion in health care savings in 10 years (Dobias, 9/15).

CNN Money: Boehner: No Tax Hikes For Super Committee
House Speaker John Boehner drew a line in the sand on taxes on Thursday, saying that a special debt committee tasked with cutting at least $1.2 trillion from federal deficits shouldn’t consider tax hikes. “Tax increases, I think, are off the table,” Boehner said in a speech to the Economic Club of Washington, D.C. “It’s a very simple equation. Tax increases destroy jobs. And the Joint Committee is a jobs committee. Its mission is to reduce the deficit that is threatening job creation in our country.” The only things the 12-person super committee should tackle are spending cuts and entitlement reform, he said (Liberto, 9/15).

The Washington Post: Boehner Says No New Taxes For Debt Panel
House Speaker John A. Boehner (R-Ohio) on Thursday reaffirmed GOP opposition to any tax increases to solve the nation’s deficit problem, signaling a swift return to the trench warfare that characterized the debt and spending debate of early summer. Boehner said that the special committee seeking long-term debt reduction should achieve its mandated $1.5 trillion in savings entirely by cutting federal agency spending and shrinking entitlement programs (Kane and Helderman, 9/15).

The Wall Street Journal: Boehner Pushes Tax Overhaul
The Boehner speech came as the White House was preparing to present its own deficit-reduction recommendations next week to the super committee. The Wall Street Journal reported the president has decided against including proposals to slow the growth of Social Security spending. But many Democrats remain concerned that the package will revive proposals to pare entitlements such as Medicare and Medicaid and that the deficit debate will distract from Mr. Obama’s jobs proposal. “The president should continue to talk about jobs,” said Rep. George Miller (D., Calif.) (Hook, 9/16).

Politico: Obama To Shield Social Security In Deficit-Reduction
The shift away from Social Security will allow him to avoid a clash with his Democratic base over the popular retirement program at a time when he needs its support more than ever, both to push for his $447 billion jobs program and to buck up his lagging poll numbers. Medicare could be a different story, though, as the White House revisits some unpopular ideas from the talks with Boehner (Budoff Brown, 9/15).

Reuters/MSNBC: Obama To Exclude Social Security From Deficits Plan
President Barack Obama will not include reforms to the Social Security retirement program in his deficits proposals to Congress next week, the White House said Thursday. … Obama also expressed a willingness in the summer debt talks with House of Representatives Speaker John Boehner, a Republican, to raise the eligibility age for Medicare health benefits to 67 from 65. But The Wall Street Journal said Thursday the White House was now looking at cuts to providers and increased premiums for wealthier recipients of Medicare, the health care program for the elderly (MacInnis, 9/15).

Politico: Obama Jobs Plan: Raise Taxes On Health Care
The White House wants another shot at requiring some Americans to pay more for their employer-backed health coverage, despite a previously tepid response from the very same lawmakers needed to advance the proposal (Dobias, 9/15).

Excerpt from:
Deficit Panel Moves Deliberations Behind Closed Doors

Tags: boehner, health, house, money, obama, package, president, security, social, street, summer, taxes, white, white-house, work

The Medicare Advantage Program – How Can it Help Me?

If you are eligible for Medicare, you might want to look into Medicare Advantage programs as well. Formerly known as Medicare +Choice, Medicare Advantage is the private insurance option of Medicare. It offers participants the choice of using a private insurance plan instead of Medicare itself. Since Medicare’s for-fee services and restrictions can be significant, particularly in the case of prescriptions, providing people with this option allows many people to get better health insurance coverage with more benefits and lower out-of-pocket costs. And, because the cost of these plans is determined by competition among providers, you can often find an inexpensive plan that covers your needs, becoming an excellent alternative to Medicare itself.

Medicare Advantage (also known as Medicare Part C) allows you to sign up for a HMO or PPO plan…or Fee For Service (FFS) or a Medical Savings Account (MSA)…whatever fits your needs best. Or not. You are not forced to use a private insurer if you feel that Medicare’s coverage is adequate for your needs.

In the past, a Medicare Advantage plan also included the opportunity for much better prescription coverage. However, with the passage of the Medicare Part D prescription plan instituted in 2006, Medicare recipients now must sign up for a private prescription plan, even if they do not sign up for anything else but basic Medicare. However, should you opt for a Medicare Advantage plan, you will find that most companies offering such plans also offer Part D prescription plans. Indeed, you might find it advantageous to get both because the additional cost may be minimal. However, be aware that, while Medicare Advantage plans are standardized, Part D prescription plans are not. So do not sign up for a joint plan automatically. Make sure your prescription plan meets your needs. There are no restrictions on having one plan with one company and the other with another company.

If you do not have medical problems, do not go to the doctor for more than an annual checkup, or otherwise rarely use medical services, a Medicare Advantage plan may not be for you. However, if you have a pre-existing condition, a Medicare Advantage plan may save you significant money in the long run by reducing out-of-pocket costs and because, except for end-stage kidney disease, preexisting conditions do not prevent you from enrolling, although you may need to choose a special needs plan.

If you are interested in looking into Medicare Advantage plans in your area, you can start by going to http://www.medicare.gov/Choices/Advantage.asp

For more information on Medicare benefits and other Medicare application tips, you should visit http://www.medicare-benefits.com today!

Can I Enroll In A Medicare Advantage Plan If I have Already Other Health Insurance Coverage?

If You Have Other Coverage with your employer, union, or Indian or Tribal Health Program benefits, you need to talk with the plan administrator about their rules before you enroll in a Medicare Advantage Plan.

In some cases, joining a Medicare Advantage Plan might cause you to lose your other health care coverage, or if you drop your employer or union coverage, you may not be able to get it back.

Make sure to carefully explore all your Medicare health insurance options and compare Medicare Advantage Plans to make sure you select the plan that best suits your needs and your budget.

How to Select the Right Medicare Plan

Just deciding which way to go when choosing from the combination of different types of healthcare coverage is confusing for many people eligible for Medicare. For most people, having choices is a very good thing. But what about when you have thousands of plans to choose from?

When it comes to Medicare, you have nothing but choices. Depending upon your circumstances, you may want to stay with traditional Medicare, or Medicare Parts A and B. If you choose this path, you'll probably want to get a Medicare Part D (prescription drug) plan, too, to ensure your medications are covered. Or, you might be more interested in a Medicare Advantage plan, which can combine traditional Medicare with drug coverage and other benefits. You also may be interested in even more coverage, such as that offered through a Medigap (supplemental) plan.

Fortunately, help is available. A Medicare advisor offers education on available Medicare programs, answers questions, and offers detailed plans of action to get the most out of your insurance choices. You also should know the basics beforehand.

Traditional Medicare

Medicare Parts A and B, also known as traditional or original Medicare, have been around since 1965. Medicare Part A is free to most people who've worked and paid Medicare taxes for at least 10 years and provides people with inpatient hospital coverage. Medicare Part B, which costs most people $96.40 in 2009, covers outpatient medical expenses.

People who have traditional Medicare can see any doctor they want in any facility they want without a referral, as long as that doctor or facility accepts Medicare patients. But traditional Medicare's benefits are limited.

Not only does traditional Medicare not cover most outpatient prescription drugs, if a beneficiary uses their coverage frequently enough, it can get very costly. That's why we also have Medicare Advantage and Medicare Part D plans available.

Medicare Advantage Plans

Medicare Advantage, also known as Medicare Part C, combines Medicare Parts A and B in one plan so you can get your Medicare Part A and Part B coverage in the same place. Medicare Advantage plans also often include prescription drug coverage and other benefits not commonly found under traditional Medicare, such as vision and dental services.

This program works just like private insurance - you have different types of plans to choose from depending upon what type of provider access you want (for example, health management organizations (HMO), preferred provider organizations (PPO) and more) and what health conditions or prescription drugs you take. You also can choose from a number of different levels of coverage. All Medicare Advantage plans must offer at least as much coverage as that offered under traditional Medicare. If they offer prescription drug coverage, that coverage must meet minimum Medicare Part D standards as well.

Medicare Part D

Medicare Part D is prescription drug coverage. Like Medicare Advantage, Part D is offered by private companies who are reimbursed for providing healthcare coverage. Also like Medicare Advantage, a minimum amount of coverage is required for a plan to qualify as a Part D plan and many different plans, some with different levels of coverage, are offered throughout the United States. Part D plans are best for people who use prescriptions, but don't need to see their doctors often.

Medigap Medigap, or Medicare supplemental plans, is sold by private companies to fill the "gaps" in traditional Medicare. This includes the cost of deductibles, co-payments and coinsurance. It also may cover other services that Medicare does not insure. In 2009, there are 12 Medigap plans - A through L.

Although Medigap may offer some additional coverage if an individual chooses to keep traditional Medicare, you can't buy a Medigap plan if you have Medicare Advantage. Because most Medicare Advantage plans offer better coverage and frequently more benefits than Medigap, having both is usually unnecessary. You can have both Medigap and Medicare Part D, but it may be more expensive to do this than simply purchasing a Medicare Advantage plan instead.

Comparing And Contrasting

It's no wonder that people are confused. There are thousands of plans available throughout the United States, and an average of 40 Medicare Advantage and Medicare Part D plans in any given area.

This is where a Medicare advisor can come in handy. With so many options in just one area, choosing a plan might feel like throwing darts at a board. Using a Medicare advisor can help you narrow down your choices so you know which combination of Medicare coverage will work best for you and which plans will give you the best and most affordable coverage for your needs.

Jim Allsup writes for Allsup, a provider of Social Security disability, Medicare and workers' compensation services, including Allsup Medicare Advisor, Medicare assistance services for people with disabilities and seniors.

Medicare Frequently Asked Questions

Straight talk. Answers to 3 FAQ's about Medicare and Medicare Supplement Insurance. You don't need to be a Medicare expert or devote hours reading info and researching online to understand your Medicare and Medicare Supplement options.

Q: What is the difference between Original Medicare and Medicare Advantage (MA) Plans?

A: There are several key differences between Original Medicare and Medicare Advantage Plans. Original Medicare is your government Medicare. Medicare Advantage is private Medicare that takes the place of your government Medicare. You will have similar out-of-pocket expenses with an MA plan as you would with Original Medicare alone.

It is important to understand that in general an MA plan is the same coverage as Original Medicare. You may get some extra benefits such as dental or eyeglasses, and some of the plans include drug coverage as well, but the base coverage will be the same as original Medicare.It is not the same as Medicare plus a Medigap or Supplement Plan. You can not get a supplement plan to cover your out-of-pocket expenses when you are enrolled in an MA plan.

Q: What are my potential out-of-pocket expenses with my Medicare coverage?

A: Medicare itself is great coverage but there are some gaps in the coverage that many beneficiaries fill with a Medicare Supplement policy.

Medicare Part A covers hospital room and board, short-term skilled nursing care and hospice care.

There is a deductible for Part A. Currently the deductible is $1132.00. This means that you will pay the first $1132.00 before Medicare benefits are paid. This is not an annual deductible. It is a benefit period deductible. A benefit period starts the day you are admitted to the hospital and ends 60 days after you are released. It is possible that you could encounter the Part A deductible more than once in a year. After the deductible is met Medicare covers 100% semi-private room and board for 60 days. From day 61-90 the is a daily co-insurance of $283 per day. After 90 days Medicare provides coverage for an additional 60 lifetime reserve days with you paying a daily co-pay of $566.

Skilled nursing facility following a hospital stay of at least 3 days is covered by Medicare at 100% for the first 20 days. Days 21-100 have a $141.50 co-pay per day.

Hospice is covered by Medicare with very limited co-pays.

The deductibles and co-insurances increase from year to year.

Your exposure on the A side of Medicare are your deductible, and the various co-insurances mentioned above.In addition, Medicare doesn't cover the first 3 pints of blood.

Medicare Part B covers medical expenses in or out of the hospital such as doctor visits, inpatient and outpatient medical and surgical services and supplies.Diagnostic testing, speech and physical therapy, and durable medical equipment are Part B expenses.

There is a calendar year deductible for Part B. This year the deductible is $162.00. After you have met your deductible medicare covers 80% of approved amounts for covered services.

Your exposure on the B side of Medicare includes the deductible and 20% of approved amounts for covered services and any Part B excess charges. Part B excess charges are charges for covered services that exceed Medicare approved amounts.

Q: How can I limit my exposure and cover the gaps in my Medicare coverage.

A: You can supplement your Medicare coverage with a Medigap insurance policy.

There are 10 Medicare supplement policies that are approved by Medicare. All of the supplements have the same basic benefits.

Medicare supplement basic benefits for Medicare Part A cover all of your hospital co-insurances and will extend your covered days beyond Medicare coverage for and additional 365 days. The Part A deductible and skilled nursing co-insurance coverage are optional benefits.

Your supplement will automatically adjust to the changes in Medicare deductibles and co-pays from year to year.

Under Medicare Part B, Medicare Supplement basic benefits will cover your 20% co-insurance.

You can choose a supplement plan that includes optional benefits such as Part B deductible, Part B excess, and foreign travel emergency coverage.

Seek the guidance of a broker who specializes in Medicare to help you determine which of the 10 Medicare Supplement Plans best suits your needs.

Stephanie Coutavas is an Insurance Professional specializing in Senior Insurance Solutions and Medicare Insurance. Co- founder and Senior Broker at MedicareQuote4U.com-Common Sense Insurance Solutions Group. Stephanie decided to specialize in Medicare because, "I saw the effects of the confusion and misinformation in the senior market. I really feel that with the proper,correct information, presented in an understandable way that our Seniors can position themselves for the future and achieve the peace of mind and security that they deserve at this exciting stage of life. We strive one client at a time to make sure that we address the individual and that they are better for having met us, regardless of whether they choose us as their broker."

Whether you are receiving Medicare Benefits before age 65, helping a parent or loved one or just not sure if there might be a better value for your health care $$$, we can help. Call us at 1-888-347-5552 to speak with a licensed Medicare Supplement Specialist or visit us at http://www.medicarequote4u.com. We are your Medicare Supplement experts and we are standing by to help.

Medicare Supplemental Policies

Medicare supplement plans are also known as "Medigap insurance". It is private health insurance, which is designed to supplement the original Medicare plan.

In basic format, Medicare is a coverage plan that usually only covers up to 80% of all aspects of medical care for those that have this form of health coverage. The remainder of expenses are often required to be paid out of pocket from those that do not have any other type of coverage. This remaining 20% could be rather costly depending upon the types of health conditions and needs that are present with anyone under this type of plan.

Recently, there has been an increased awareness placed upon the costs that are out of pocket form those under this plan. With such, an increased focus on supplement insurance has been something that many people have been paying attention to. Understanding what this is and how to select the best provider could save a great deal of money.

There are actually a dozen forms of Medicare supplement insurance that exist today which all offer varying degrees of coverage options and protection. Basically, they are labeled A through L and all have varied costs and levels of coverage. Also, there are various co payment levels within these policies.

For those that wish to pay lower premiums, the Medicare Select plan is best for them. There are much lower premiums and co payments required and provide which are more suited for those with a lower budget. With this plan, there are very specific lists of doctors and specialists that are covered with this plan which could be rather restrictive.

One of the incredible benefits of this type of insurance is that it is very heavily regulated. Basically, this means that any level of protection purchased is the same across the spectrum of companies that offer them. Thus, shopping around is truly not very difficult to do at all.

When purchasing Medicare Supplement insurance, it is usually best to do so within the first six months of receiving Medicare. This is often because companies are unable to deny coverage based upon pre existing conditions.

Medicare Advantage Plans - Advantages to Seniors

Some Medicare Advantage Plans have gotten a bad rap lately, but that may have been because of the overzealous marketing efforts of a few people, rather than the actual plans. All Medicare Advantage plans must be approved by the Center for Medicare and Medicaid (CMS). They must provide services that are equal to, or better than, services provided by the traditional Medicare Part A and Part B. Of course, the point of these plans is to provide services that will provide advantages over Part A and Part B!

What is the Problem With Medicare Advantage?

The recent flak over Medicare Advantage Plans is over the type of plan called PFFS (Private Fee For Service). These plans allowed access to "any doc", or the enrolled person's choice of Medicare care. The problem there was that the doctor or other medical provider had to accept and bill to the plan. Since some of the plans were very new, medical providers like doctors, hospitals, and therapists did not have the plans yet. This caused problems because the enrolled people needed to file the bill with the insurance companies instead of having the medical provider do it. Indeed, this did cause problems for many Medicare recipients.

What about other Medicare Advantage Plans?

Medicare Health Maintenance Organizations (HMO) and Medicare Preferred Provider Organizations (PPO) have been around a long time. Both of these types of Medicare Advantage plans use networks of doctors and other medical providers that have already agreed to participate in the plans. As long as plan members use their identification card, they are not experiencing a lot of billing problems. In general Medicare PPO and HMO members are expressing great satisfaction with their health plans.

A combination of private competition and federal incentives allow private plans to offer health plans that do deliver quality health care and save Medicare recipients money. The networks, once thought to be restrictive, actually ensure that medical providers understand and agree to the system so that system works more smoothly. These plans usually include the Part D or prescription part of Medicare too!

Who is Happiest With Medicare Advantage Plans?

Medicare Advantage plans appeal to people with moderate incomes. Medicare supplements can be a burden for seniors and disabled people on fixed incomes. However, many seniors with larger incomes also participate in Medicare Advantage plans because they come from the same companies that used to carry their old group or individual health plans, and they are comfortable with the medical providers in the network!

Medicare Advantage plans also provide satisfaction to those with specialized or chronic needs. Plans are available that address chronic conditions such as diabetes or heart problems, or those in nursing homes. Some plans even address the needs of caregivers!

You have choices about how to get the most out of your Medicare benefits!

M Katz is a licensed Texas insurance agent, who has been certified to work with many Medicare Advantage Plans. In her experience, the vast majority of her clients who chose Medicare Advantage plans or Medicare Supplements with traditional Medicare were satisfied because they chose the right plan for their own needs.

We have helped thousands of seniors and disabled people make the most of their Medicare benefits. If have questions about Medicare Benefits, consult with the Medicare Health Plan Experts at Trusted Senior Specialists Medicare Plans!

The Medicare Factor in Long Term Care Planning

Medicare and Health Insurance History in the United States With a vision to provide a universal health plan, such as Medicare, the United States does not truly have a national health care plan. Even though universal health care, another name for national health care plans, has its conception in the 20th century, the United States has shied away from its inception. In fact, the United States is one of the few industrialized countries that do not offer true, government provided universal health care.

The first private health insurance programs created nation wide was the Blue Cross plans. Originally paid by individuals on prepaid bases for certain hospitals, this was later changed to include any sponsored hospital. The individual would provide a monthly payment that ensured he was cared for a specified number of days.

The Blue Shield plan was another plan created during the 1940s. It allowed the prepayment for doctor services. The plan’s creation provided an alternative to a national health care plan. The Blue Shield and Blue Cross plans eventually merged, forming what we call today Blue Cross Blue Shield.

There are varying reasons that a national health care insurance plan has not taken hold in the United States. As the American Medical Association has opposed the establishment of a national plan, the employer sponsored insurance plan has added the catalyst to not create a national plan. Since the employers can write off the plans provided to their employees, Congress has not received any push to change the concept of employer-sponsored plans.

The closest conception of universal health care the United States institutionalized is Medicare. Medicare was created in 1965.

Then Came Medicare

So how did Medicare take hold? Though it is not a true national health care plan for everyone, only for those over 65, it is because of President Lyndon B. Johnson and a majority of Democrats in both houses of Congress that the plan came into existence.

Attempting to provide a plan comparable to the private sector, the creation of Medicare part A came about. By mimicking the current plans, Medicare part A provided a determined amount of hospital care. Any more care beyond what the plan stated was to be paid by the patient.

The disadvantage to a plan such as this is the increasing expense of hospital care. The costs paid by the insured are now at a level to completely destroy financially that individual. In other words, as expenses have increased with hospital care, Medicare Part A has not kept pace. Therefore, any difference in cost is paid for by the patient.

This realization gave way to catastrophic plans. These plans allow the insured to pay for some of the upfront costs up to a predetermined out-of-pocket limit. Once that is reached, the insurance pays 100% of the cost. Unfortunately, Medicare has not evolved into this type of arrangement.

As such, we are beginning to see the bankruptcy of the plan, as well as the bankruptcy of the insured attempting to cover their part of the insurance plan.

Medicare part B evolved into a plan to encourage doctors to be paid by the federal government with the attempt to not institute price controls by the same. Under the original intent, Medicare part B paid for 80% of a doctor’s services while the patient paid the other 20%, and any fees above the reasonable costs.

However, the plan has degenerated into a government price control plan, where the government dictates to doctors what they will be paid for services the doctors provide.

Medicare Eligibility

Medicare enrollment takes place only one time during the year. The time frame usually is between October and December of the year prior to its activation for an individual. To learn more of the enrollment process for Medicare, read this publication: http://www.medicare.gov/Default.asp .

Most individuals understand that to enroll one must be age 65 years or older. However, most may not know that they also must be eligible for receiving Social Security or Railroad retirement. Furthermore, the individual does not need to be receiving either one of the retirement payouts, but one must be eligible to receive them.

In short, you can receive Medicare without receiving Social Security or Railroad Retirement income. You probably know someone who has decided to continue working. As such, they have delayed their receipt of government retirement payouts. However, to ensure a medical benefits plan, they have signed up for Medicare.

When you sign up for Social Security or Railroad retirement at age 65, or decide to receive payments at 65, you are automatically enrolled in Medicare Part A and Part B.

If an individual under 65 is disabled, and has applied for and receives Social Security disability for two years will receive Medicare. Furthermore, if a person of any age with end-stage renal disease may also receive Medicare.

Anyone born after 1938 will not receive their full retirement benefits from Social Security until the age of 67. Due to this, most individuals may decide to continue working. As such they will not apply for Social Security at the age of 65, thus not automatically receiving Medicare Part A.

Or, if the person is under a group plan, he or she may be forced into enrollment in Medicare at the age of 65. The person will not lose their group coverage, but it will be shared with Medicare.

I Have A Group Plan

Returning to the previous situation where an individual continues to work, or not retire, and not having a group plan, he or she may not receive a reminder to sign up for Medicare Part A. Fortunately, there will not be any penalties. However, he or she will only be allowed to sign up during a specified period during the year.

As for Medicare Part B, there is a penalty. You must sign up for Medicare Part B either three months before or after your 65th birthday. Otherwise, a penalty will be assessed against the premiums. However, if a person is covered under equivalent group coverage or is on Medicaid, the penalty is waived.

Though Medicare Part A is paid via payroll deductions and there is not cost when implemented, this is not the case with Medicare Part B. Medicare Part B is a cost-sharing plan.

The premiums for Medicare Part B are $88.50 (for year 2006). However, these premiums increase every year as the cost of medical services increase. Beginning in 2007, for those individuals in high-income brackets, they will pay a higher premium as a percentage for Medicare Part B.

The increases are phased in over a five-year period. The increases are scheduled as such:

income of: $80,000 -$100,000: 65% subsidy
income of: $100,000-$150,000: 50% subsidy
income of: $150,000-$200,000: 35% subsidy
income above: $200,000: 20% subsidy
If you are married, the incomes are twice what are depicted. However, for both individuals and married couples, the income ranges increase annually based on the Consumer Price Index (CPI).

I’m Not Eligible for Social Security

What about those individuals who are not eligible for Social Security and their spouse is not eligible either? That person can still get Medicare but will pay a premium, which may be equivalent to the Medicare Part A premium.

Eligibility for Social Security requires at least 10 years, or 40 quarters, under the system or paying into the system.

You do not have to participate in the Medicare program. However, if a person does not participate in Part A, they are not allowed to participate in Part B. If the person, though, must pay premiums for Part A, they can elect not to, and instead purchase Part B. It also works the other way. If you do not desire to participate in Part B, you do not have to.

To sign up for Part B, it must be done so during the first three months before the month of an individual’s 65th birthday, or three months after. This equates to seven months to sign up (3 months before and after, and the individual’s birthday month).

If an individual does not sign up for Medicare Part B during the initial period, they are penalized. The penalty is 10% for each full 12-month period the individual does not sign up. A person can sign up for Part B between January 1 and March 31 if they do not sign up during their initial enrollment period – the seven months mentioned earlier.

Can I Afford Not To Have Medicare Part B?

But what of the individual who cannot afford the premiums for Medicare Part B? Most individuals who are affected in this manner may be able to receive assistance through Medicaid or a state’s Medicare Savings Program. Normally, someone must meet the state’s requirement of limited income and resources. The plan will pay for Medicare premiums and possibly Medicare deductibles and coinsurance.

A situation which may help with understanding may include a person who receives Medicare Part A (which the Medicare Savings Program might pay the premium) and

He or she has resources equal to or less than $4,000; a couple would be $6,000. The resources may include monies in checking or savings account, stocks or bonds.

He or she has a monthly income of less than $1,068; a couple would be $1,426 (as of 2005; Alaska and Hawaii have higher limits).

If you are an individual that is 65 or older and still working with a group insurance plan, there are solutions to Medicare Part B. Most individuals under this scenario will continue with their group plan and use Medicare Part A as their secondary, or supplemental, insurance. However, they may not need the Part B.

But what if they do need Part B? As mentioned earlier, would they not be penalized if they signed up later? There are special rules for someone under a group insurance plan that allows them to sign up for Part B without a penalty.

If an individual is retired but has continued with a group plan under an agreement with the company, there are waivers to allow for coverage of Part B. However, the waiver only takes effect if the person loses their group coverage in the future.

If you are one of the aforementioned individuals who need to take advantage of these waivers for Medicare Part B, then you will need to apply during the Special Enrollment Period.

Study Up So You Don’t Have To Pay Up

Make sure you go to the Medicare link (http://www.medicare.gov/Default.asp) and read what you are entitled to. I don’t like that word, entitlement, but you have paid for Medicare so use it. Just don’t abuse it. Make it part of your Long Term Care Planning so you can make it through your golden years.

T. Sydney Shinn Home Health Care Solutions [http://www.home-health-care-solutions.com]

A developer of technical health care solutions, a Crown Ministries budget counselor, and a family man, Mr. Shinn understands the challenges of today's families. After taking care of his own father for five years, he created Home Health Care Solutions to to provide the material that families need to make informed decisions on home care options.

Wonder if a loved one will be able to continue to live in their home as they mature? Discover information for families and seniors about in home care giving, in home care services, mental and hospice care, legal and financial planning to ensure that the elder family member is able to live in their home forever. The site provides guidance in preparing the retiree, family, caregiver and senior family member.

The New Medicare Prescription Drug Plan Pitfalls

Coverage for the New Medicare Prescription Drug Plan begins on January 1, 2006. Many seniors are feeling confused and concerned about this plan. Here are some of the pitfalls associated with this plan that Medicare eligible individuals will want to be aware of.

1. To join the Medicare Prescription Drug Plan (Medicare Part D) you must choose one Prescription Drug Plan from dozens of plans that are available (there are up to 50 plans in some states). Once you have chosen a plan you are "locked-in" until the enrollment period the following year.

2. Prescription Drug Plan (PDP) providers can change the particulars of their plans at any time with a short warning period for plan enrollees. These changes can include changes to which drugs are covered under the plan, which pharmacies are in the plans network, the charges associated with being a part of the plan and any other detail of the plan. These changes are at the discretion of the plan administrator and can be implemented at any time.

3. For 2006, once you have used $2250 worth of medications, you are 100% responsible for paying for the full amount of the drug until you reach the $5100 Catastrophic coverage limit. This range between $2250 and $5100 where you have to pay for 100% of your drug expenditures is known as the "donut hole".

4. At its greatest level of savings Medicare provides a 49% savings. This is only 7% better than the average savings experienced with a licensed Canadian pharmacy. This greatest savings occurs when people spend exactly $2250 on medication in one year (if you spend more or less than that the savings go down). That means that the greatest savings anyone on Medicare can experience above a Canadian pharmacy's average savings is $157.50 annually (7% of $2250) or $13.13 a month. Is $13 a month worth the risk of being "locked-in" to paying monthly premiums for a plan that can be switched on you at any time. (Note: Some people can save more than 49% if they spend well over $7100 per year. This is in the catastrophic coverage range).

5. If you do not sign up with at Medicare Prescription Drug Plan before May 15th, 2006 then you will be penalized with a cumulative 1% increase to your premiums for every month that you do not enroll in a plan after that date. This penalty is the governments way of forcing people, who do not really need a drug plan, into joining a plan and thus "subsidizing" the Medicare program. 1% of the average plan is 32 cents. So for every month after March 15th, 2006 that people are not in a plan, 32 cents will be added to your monthly premium or basically $1 for every 3 months you do not join. This penalty is however applied to your premium for all future monthly premiums. What many seniors groups are advocating is for people to wait until the May 15th, 2006 deadline and then join the cheapest possible plan (approx. $10 monthly premium) and still order medicines from a licensed Canadian pharmacy like Universal Drugstore.

6. Average monthly premiums, the annual deductible and the Out-Of-Pocket expenditure limits are expected to increase substantially every year. This means you will be required to spend more and more money every year that you are part of the Medicare prescription plan.

7. Unless you are spending more than $800 on medications in 2006 there is no real savings with the Medicare Prescription Drug Plan. This required minimum amount of expenditure to experience savings will increase every year as the annual deductible, the monthly premiums and the Out-Of-Pocket expenditure limits are also increased every year.

8. It will be extremely time consuming and difficult to decipher myriad plans available in each state (all providing different coverage) and to try and figure out which plan is best for you personally. This will be twice as hard for a couple as the prescription drugs used by each person in the couple will be different and therefore they may require different plans. Even once a plan is chosen, there is still the risk of having the plan changed once you have made your decision and you are "locked-in".

9. Drug companies stand to make a ton of money off of the Medicare program. That is why they spent millions of dollars lobbying to get the legislation passed to make Medicare Part D a reality. It is also why Senator Bill Tauzin, a major advocate and motivating force behind getting the Medicare Prescription Drug Plan passed, is now a $2 million a year executive in Big Pharma's trade organization. On Sept. 5, 2003, Sen. John R. McCain (R-Ariz.) told the New York Times, "There's no doubt in my mind that the drug industry got everything it wanted and more," he said. "It perhaps should be called the 'Leave-No-Lobbyist-Behind Bill.' "

10. Plan providers have the ability to negotiate better drug pricing with the drug companies but they do not have to pass the savings on to the consumer or the government.

11. If you join a Medicare Prescription Drug Plan (PDP) at any time after Dec 31, 2005 your coverage is not available to you until the first day of the following month.

12. Action is required to enroll in Medicare Part D (the Prescription Drug Plan part) unlike Medicare parts A and B which are automatic. You are not simply enrolled in the best plan for you. You have to wade through piles of information to decide what is best for you.

13. It is very difficult for persons who qualify for Medicare Part D to be sure if their drugs will be covered under their plans formulary (which can change at any time anyways.) A formulary is a list of drugs covered under particular drug plan.

14. You may not qualify for Medicare Prescription Drug Benefits if your annual income is too high or if you own too many assets.

15. Different plans will have different monthly premiums. The plan you need may have a really high monthly premium. $32.20 is simply the "predicted" average monthly premium.

16. Will your plan cover temporary-use medications (such as antibiotics or heartburn medications) or only chronic medications (such as drugs used for diabetes or heart conditions)?

17. Plans with lower monthly premiums may have higher deductibles and co-pays.

18. Payments for drugs which are not on your plans formulary are not counted towards your Out-Of-Pocket expenditure limit.

19. Payments made by insurance plans do not count towards your Out-Of-Pocket expenditure limit

20. Is your regular pharmacy included in your plans network of pharmacies? Like many people you have most likely come to rely on a pharmacist that knows you and your medical conditions well. However, you may be forced to go to another pharmacy if your pharmacy is not included in your plans network of pharmacies.

21. How many days of medicine can you get at one time? Do you need to keep going back to the pharmacy every month or can you get 90 days?

22. Will your drug be covered by your plan the next time you go into your pharmacy?

23. Does your plan require step-up therapy or prior authorization? Step-up therapy means using drugs in a series of stages or steps in order to treat your condition. For example if you have GERD your plan may not cover Nexium unless you have previously tried ranitidine (Zantac) and/or omeprazole (Prilosec) first. Prior Authorization means that for certain drugs, your plan will not cover the drug without first reviewing your medical and drug history to determine if your treatment steps have been appropriate.

24. The Prescription Drug Plan providers stand to make a ton of money from the Medicare program (drug companies stand to make the biggest windfall).

25. Net cost to the government for Medicare Prescription Drug Benefits is estimated to go from $37.4 Billion in 2006 to $109.2 Billion in 2015 (estimate by Health and Human Services department). However, much higher estimates of the costs of Medicare Part D can also be found from non-government resources. Two years ago Congress reluctantly approved for the plan at a cost of no more than $395 billion dollars over 10 years. A few months later the cost ballooned to $534 billion and earlier this year it shot to $795 billion. Big Pharma is the biggest recipients of the increased dollars added to the costs of this program.

26. Plan may force you to use generics when you are used brand name medications and may not be able to tolerate generic versions.

27. The appeals process for some plans is very confusing and convoluted. (You can appeal to your plan if your drug is not covered.)

28. Many of the big pharmaceutical companies are now making anyone eligible for Medicare Part D, ineligible for their assistance programs. These companies are effectively forcing seniors into a "voluntary" program that may not be right for them. The AstraZeneca Foundation was the first to take such steps.

29. Many people are finding it difficult to obtain accurate, updated lists of what medications each plan will cover.

30. Medicare's own hotline can only answer general questions. For more specific questions you must contact each individual insurance provider.

31. Many people have waited 30 minutes or more when calling the Medicare hotline to get information that they need.

32. Rep. Dan Burton (R-Ind.) in a 60 Minutes segment televised March 14, 2004 said, "Seniors, when they find out what's in that bill, are going to be very angry. The problem is, they're not going to find out about it until after this next election."

Jeremy Cockerill is a licensed Canadian pharmacist who owns and operates htttp://www.UniversalDrugstore.com/ , one of the top Canadian mail-order pharmacies. Mr. Cockerill graduated from the Faculty of Pharmacy at the University of Manitoba with Honors in 1998. Mr. Cockerill recently won the 2005 Manager of the Year award from the Manitoba Customer Contact Association. Mr. Cockerill has been studying the new Medicare Prescription Drug plan since early 2005.

Top Carriers Dropping Medicare Advantage Private Fee-for-Service Plans

Top health insurance carriers are dropping their Medicare Advantage Private Fee-for-Service (PFFS) plans, according to recent announcements by some health insurance providers, including Coventry and WellCare. A PFFS is a Medicare Advantage (MA) plan that is available through a state licensed, risk-bearing entity, or a PFFS Medicare Advantage Organization (MAO).

As a result of PFFS coverage drops by Coventry and WellCare alone, more than 500,000 Medicare beneficiaries will have to find new coverage.

Currently, Medicare Advantage plans receive government subsidies so that they can offer beneficiaries more benefits than simple Medicare plans. Medicare Advantage plans are offered to Medicare-eligible individuals by private health insurers. However, analysts are expecting the reimbursement rates for these PFFS programs to fall by approximately five percent, making them less profitable for insurance carriers.

How PFFS Currently Work

PFFS are popular amongst consumers because they allow Medicare beneficiaries to choose their own healthcare providers, rather than having to select their providers from a limited number of in-network of Medicare-approved providers. Beneficiaries can see any provider, as long as the provider agrees to charge based on the PFFS fee schedule. This fee schedule is the same as the Medicare schedule.

PFFS MAOs have yearly contracts with the Centers for Medicare and Medicaid Services to provide Medicare beneficiaries with their Medicare benefits as well as additional benefits that a company opts to provide. Essentially, the PFFS provider pays for healthcare instead of Medicare when a beneficiary has such a plan.

The main benefit (which makes PFFS so popular) is that individuals who join PFFS MAOs are not required to use providers within a network and can, therefore, see any provider as long as the provider is able to receive payment from Medicare and the PFFS MAO.

More Changes to PFFS Plans

In addition to the decreased government reimbursement amount for PFFS plans, PFFS plans will be required to develop healthcare provider networks beginning in 2011. The change will force PFFS beneficiaries to select their healthcare providers from within the plan network, limiting their freedom to see providers that they prefer.

Experts predict that more healthcare insurance providers will follow Coventry and WellCare by dropping their PFFS plans in coming months. Individuals should contact their healthcare insurance providers if they are currently enrolled in a PFFS or are considering enrolling in a PFFS to get more information about how their provider will respond to the upcoming PFFS changes.

More Information About Medicare Advantage Plans

Medicare Advantage plans are specific types of Medicare plans that are in place to cover the cost of healthcare related expenses for Medicare participants. These plans are similar to traditional Medicare plans in that they provide financial support for individuals seeking medical or health-related services. However, the Advantage plans generally have more benefits and lower copayments than many other types of Medicare plans. In order to have a Advantage plan, Medicare participants need to have Medicare Part A and Medicare Part B plans.

One major difference between Medicare Advantage plans and other types of Medicare plans is that Medicare Advantage participants may need to see only doctors that are members of the Medicare Advantage provider plan. However, plans may allow participants to use a wide variety of services, including Medicare Health Maintenance Organizations, Preferred Provider Organizations, Private Fee-for-Service providers, and Medicare Special Needs providers.

Medicare participants should also be aware that Medigap policies do not provide gap coverage for individuals that participate in the Medicare Advantage program.

By Wiley Long - President, MedigapAdvisors.com - The nation's leading independent agency specializing in Medigap coverage. Our professional medigap advisors will help you choose the best plan.

Medicare Part D Prescription Drug Plans

Medicare Part D: What is it?

Medicare's prescription drug program was created as a result of the Medicare Prescription Drug, Improvement and Modernization Act of 2003 (MMA). Although the Act was written into law in 2003, Medicare eligible individuals did not start enrollment into these plans until January 1, 2006. This plan is commonly referred as PDP (Prescription Drug Plan) or simply Part D.

Part D is available to everyone who has Medicare regardless of income or health history. Private insurance companies provide the coverage. The enrollees select a plan from those available in their geographic region and pay the insurer a monthly premium for the coverage. Even though enrollment is voluntary there is a penalty for late enrollment which will be discussed a bit later in this article.

You can elect to enroll in a Medicare Prescription Drug plan in one of two ways:

(1) Stand along prescription drug plans (PDP); or

(2) Medicare Advantage Prescription plans (MA-PD).

The first type of plan covers prescription drug benefits only. These plans were designed for people who choose to stay with traditional fee for service Medicare and need the prescription drug coverage along with a Medicare supplement to round out their medical coverage. Most States have several carriers who offer this coverage on a free standing basis. The plans do vary in areas of monthly premiums, deductibles, copays, formularies, and other cost sharing arrangements.

Medicare Advantage plans, the second broad category of prescription drug plans, not only cover medications but also Medicare approved medical services. These plans are available through private insurers and include HMO, PPO, and Private-Fee-for-Service programs. In the case of Medicare Advantage Plans, the Medicare beneficiary has actually "traded" their traditional Medicare benefits for a Medicare Advantage program. Medicare Advantage plans sometimes provide enrollees wish additional benefits. However, there are frequently restrictions on the doctors and hospitals that they may use for covered medical services.

Enrolling in a Plan

Generally speaking, an individual may enroll in a Prescription Drug Plan during their initial open enrollment period when they first qualify for Medicare Part B. For someone turning age 65, this would be the three months prior to their birthday month, the month of their birthday, and the three months following their birthday month. After, their initial enrollment period (IEP), there is an annual open enrollment period (AEP) when they can change plans. Historically, the annual open enrollment period commences on November 15th and closes on December 31st with enrollments effective the following January 1st. There are other special enrollment periods available to medicare beneficiaries such as when they relocate or leave employer sponsored plans.

For the 2011 plan year, the annual open enrollment period will commence a bit earlier and end prior to the holidays to avoid confusion over deadlines in past years.

The "Standard" Prescription Drug Plan

All of the insurers that participate in the PDP program must offer at least the Standard plan of coverage. Monthly premiums will vary from State to State. However, the average premium for 2010 is expected to be $46.58. The plan deductible for 2010 is $310.

After you pay the yearly deductible, you pay the following amounts for the remainder of 2010,

- 25% of the cost of drugs after the $310 annual deductible until total charges reach $2830

(the plan pays the other 75% of charges); then

- 100% of the next $3610 in total drug charges (often called the donut hole or coverage

gap); then

- 5% of your drug charges or a copay of $2.50 for generic medications or $6.30 whichever is lesser; for the rest of the calendar year after you have spent a total of $4550 out of pocket.

Even though, at a minimum, an insurer must provide a Standard plan, they are permitted to offer plans that do differ in benefits. These other plans usually do away with the deductibles and impose fixed dollar copays for covered medications instead percentage copays. Some of these other plans even cover generic mediations in the "donut hole."

The Late Enrollment Penalty

If you do not have "creditable coverage" from another source, such as an employer plan or the Veterans Administration, and do not sign up for a Medicare prescription drug plan when first eligible, you will, in all likelihood, be charged a penalty for late enrollment. The penalty is based on the number of months that have elapsed since you were first eligible to enroll and when you finally do enroll. A penalty of 1% per month will be levied and that penalty will last for as long as your remain enrolled in a plan. The penalty is based on the average cost of a plan in the year that you finally enroll. For example, if 50 months have elapsed since you were eligible to enroll and the national average cost for a plan in that year was $50, the cost for your plan would be $75- (1.50 times $50). Again, this penalty would be assessed each year into the future for as long as you remain enrolled in a plan.

Financial Help for Those of Modest Means

The Social Security Administration has a program available for those with qualifying incomes called Extra Help. Extra Help can save qualifying individuals as much as $3900 per year. Extra Help can assist with premiums, paying deductibles and copays associated with a Medicare prescription drug plan. To qualify for Extra Help, an individual must be enrolled in a Part D prescription drug plan and for 2010; resouces must be limited to $12,510 for an individual or $25,010 for a married couple. Resources would include things like bank accounts, stocks, bonds, and mutual funds. Houses, cars, life insurance cash values, and money received from relatives or others to pay household expenses do not count as resources. Some individuals with higher annual income may qualify for the Extra Help program. To inquire if you qualify, you can contact the Social Security Administration at 800-772-1213 or visit your local Social Security office.

Using Information Sources To Choose a Plan

There are a number of useful sources to help you learn about the PDP plans available to and help you compare so that you can select the plan that works best for you.

Medicare's Medicare & You 2010 Handbook available at http://www.medicare.gov is an excellent source of information. The handbook lists plans in your area and basic information about cost and plans benefits.

State Health Insurance Assistance Programs and Community Organizations quite are excellent places to find help.

Also, do not forgot your local Medicare certified health insurance agent. Should you or your parents need assistance in selecting a Medicare prescription drug plan, please feel free to contact us at 818-597-2890.

Edward Walden, CLU, RHU, REBC

New Medicare Supplement Plans M and N Offer New Lower Premiums For Medicare Recipients

Due to the 2010 Medigap Modernization act which goes into effect on June 1st. 2010, there will be some changes regarding the current standardized Medicare Supplement Plans. These changes will not affect those who are already enrolled in a Medigap Plan prior to this date, and only applies to people enrolling on June 1st or after.

Medigap Plans E, H, I, and J are being eliminated by Medicare, however those who are currently enrolled in these plans will be allowed to remain in them with no changes. Two benefits that are also being eliminated are the At-Home Recovery benefit, as well as the Preventative Care benefit, as these were determined by Medicare to be completely underused by beneficiaries. Those who are enrolled in plans prior to June 1st. 2010 that contain either of these benefits will be allowed to continue using them.Other important changes include the addition of the Hospice benefit to all Medicare Supplement Plans, as it will now be a core benefit of all Medigap Plans.

The new Modernized Medicare Supplement Plans will also include two new plan letters that will likely be very attractive to those currently on a Medicare Advantage Plan. Those two plans are Medicare Supplement Plan M, and Medicare Supplement Plan N. Due to the rising costs of Medicare Advantage Plan premiums, and the growing number of physicians choosing to not participate in them, Medigap Plans M and N offer various cost sharing features that help in offering lower premiums for both compared to Plans such as Medicare Supplement Plan F or Plan G.

Medicare's new Plan M offers unique cost sharing options that are particularly attractive to Medicare beneficiaries who are relatively healthy. Plan M offers to pay 50% of the Medicare Part A deductible, which is $1100 per benefit period in 2010. For example, if you are admitted to the hospital and you have a Medigap Plan M, you would need to pay half of the $1100 deductible, or $550. The current rules still apply to the Medicare Part A deductible, in that if you are admitted and leave for 60 days or more, and then need to return within the calendar year, you must pay this deductible again.

With a Medicare Supplement Plan M, you are also responsible for paying the Medicare Part B deductible, which is $155 for 2010. Beyond this deductible there are no doctor's office co-pays and the 20% coinsurance will be paid by the plan.

Another new plan being introduced on June 1st. 2010 is Plan N. This plan also offers cost-sharing options to the beneficiary much like Medicare Supplement Plan M, however with Plan N they are in the form of co-pays.

If you are admitted to the hospital and have a Medicare Supplement Plan N, you are required to pay a $50 co-pay. For doctors visits there is a co-pay of up to $20 per visit, after you meet the Medicare Part B annual deductible ($155 in 2010). These co-pays allow for the premiums of Medigap Plan N to be lower than the current Medicare Supplement Plans available, also making it an outstanding choice for those who are coming off of a Medicare Advantage Plan (Whether the plan is leaving your area, or you are in the enrollment period and wish to make a change).

With lower premiums and cost sharing options such as co-pays and deductibles, Medicare Supplement Plans M and N should be an excellent option for people on Medicare, particularly those who do not mind paying portions of deductibles or co-pays.

Russell Noga is the owner of http://www.Medisupps.com an online independent agency and Information Center people can visit to learn about Medicare Supplement Plans and Rates in their area.

An Overview of Medicare Supplement Plans A Through L

You'll find twelve Medicare supplement policies that handle expenses not covered by regular Medicare program. Each of these policies is required to pay for particular fundamental items.

The policies are identified as Plan A through Plan L. Each one provides a different set of benefits targeted at filling "gaps" in Medicare insurance coverage. They're each listed consequently. Plans K and L are similar in benefits to Plans A and J, but are less costly every month yet have higher limits.

If you are looking for a high allowable choice, Plans F and J have a $2000 deductible limit. This insurance plan allowable must be paid before the plan insures any expenses whatsoever. The amount of the insurance deductible on these plans aren't fixed and, consequently, may increase annually. Your premium itself is lower, although your out-of-pocket fee will be much higher.

Please be aware: Medicare SELECT is really a Medicare medigap health care insurance policy offered in addition to the twelve common A-L plans. SELECT usually costs less than the standard A-L plans. The downside to Medicare SELECT is the fact that you will have limits on which health professionals and hospitals you'll be able to decide on. If you wish to learn more about which Medicare SELECT plans can be obtained in your area, speak to your state insurance plan department.

Are you presently in a Medicare Advantage Program? (Medicare Health Maintenance Organization HMO is a Medicare Advantage Plan.) If you are, you no longer require a Medigap coverage plan.

People of Massachusetts, Minnesota, and Wisconsin have different normal Medigap plans from which to pick.

Simple Benefits:

Paid for by Plans A-J:

? Medicare Part A copayments along with insurance coverage for 365 more days after Medicare benefits end

? Medicare Part B copayments (typically 20 % of Medicare-approved expenses), or copayments for hospital services

? Initial 3 pints of blood annually

Paid for by Plan K:

Medicare Part A copayments plus coverage for 365 more days after Medicare benefits expire

? 50 % of hospice cost-sharing

? 50 percent for the initial three pints of blood every year

? 50 % Medicare Part B copayments, except 100 % copayments for Part B preventive services

Covered by Plan L:

Medicare Part A coinsurance plus insurance coverage for 365 additional days after Medicare benefits end

? 75 percent of hospice cost-sharing

? 75 % for the first three pints of blood on a yearly basis

? 75 % Medicare Part B coinsurance, except 100 % coinsurance for Part B preventive services

Medicare Part A Hospital Insurance deductible

Dealt with by Plans B-J:

$1,068 in 2009 for each benefit period for hospital services

Paid for by Plan K:

50 percent of the $1,068 Part A hospital insurance deductible

Covered by Medigap Plan L:

75 % of the $1,068 Part A hospital insurance deductible

Skilled Nursing-Home Costs

Dealt with by Medigap Plan C-J:

Your cost ($133.50 in 2009) for the days 21 through 100 in a skilled nursing home

Dealt with by Medigap Plan K:

50 % of $133.50 for days 21 through 100 in a skilled nursing home

Insured by Plan L:

75 percent of $133.50 for days 21 through 100 in a skilled nursing home

Medicare Part B Deductible

Covered by Medigap Plans C, F, J:

Yearly insurance deductible for doctor services ($135 in 2009)

Medicare Part B Excess Charges

Insured by Medigap Plan F (100 percent), G (80 %), I (100 percent), J (100 percent):

If your doctor doesn't accept assignment, the difference between what your medical professional bills and the Medicare-agreed upon amount.

Foreign Travel Emergency

Paid for by Plan C-J:

? Outside the United States: 80 percent of the expense of emergency care

? Up to $50,000 in your lifetime

? Yearly deductible of $250

At-Home Recovery

Paid for by Plans D, G, I, J:

? If already receiving skilled home care dealt with by Medical insurance Help, assistance with daily living activities, such as bathing and getting dressed.

? After you no longer must have skilled care, assistance for up to eight weeks

? Will pay up to $40 a visit, seven visits each week, or a total of $1,600 each year

Non-Medicare-Covered Preventive Services

Paid for by Medigap Plans E, J:

Up to $120 annually for non-Medicare-covered preventive services ordered by your general practitioner

To learn the main features of every single Medigap Insurance plan alternative, visit the Medicare Supplemental Insurance (Medigap) Reference at http://medicaresupplementalinsurances.com now!

Medicare Supplement Insurance Helps to Make Sense of Medicare

Many of those over 65 who saved for retirement have retained greater economic flexibility than those hit by layoffs while still trying to amass savings. That makes seniors a very desirable market for several industries. In fact, senior marketing is the fastest growing marketing segment today.

In sharp contrast, one of the biggest marketing failures that can have seriously harmful complications for those over 65 surrounds Medicare. With multiple parts, two deductibles, partial coverage (only 80 percent) for doctors' services, no coverage at times (such as when you travel outside of the U.S.) and no reconciliation when doctors charge above what Medicare will pay, Medicare is a maze of contradictions. How do seniors calculate and plan for their health care costs?

In truth, both people under and over age 65 find Medicare often to be obscure and some simply give up in confusion. It's a sad comment on the "information age" that we haven't explained Medicare's coverage in a way that allows many seniors to estimate their expected health care costs and plan accordingly.

Medicare Supplement Plans Help to Translate Medicare's Coverage

Private insurers marketing Medigap insurance must explain Medicare, at least in part, to show the need for their plans to protect seniors from all the health care charges that Medicare won't cover. For many, private insurance companies discuss Medicare in ways that are more direct and more comprehensible to give seniors a better overall understanding of where the holes in Medicare's coverage put them at risk. The risk is real because hefty doctor and hospital bills far too often devour retirement savings forcing seniors to reduce their standard of living. Health care costs may be the single biggest concern for many seniors because their need for health care grows as they age and because health care prices are spiraling out of control.

A Medicare Supplement Can Cut Seniors' Medical Bills down to Size

With existing Medicare benefits in jeopardy (Medicare was extended beyond it's predicted bust in just eight years), baby boomers and seniors are exploring alternatives, such as Medicare Advantage plans and Medicare Supplement plans.

In the face of the new health care laws, Advantage plans are beginning to lose their subsidies. It's expected that these plans will become increasingly expensive with the decline of government subsidies. Medigap insurance, often called Medicare supplement insurance, is a viable alternative. With 10 different plans, each one fills the gaps in Medicare in a slightly different way so seniors are free to choose only the benefits they need without paying for any extras. Medigap plans cover Medicare's Part A and Part B deductibles to make seeing the doctor and going to the hospital when you need more affordable. These plans can also cover Medicare's co-pays and co-insurance charges, and certain plans expand Medicare's coverage to services beyond Original Medicare, such as emergency medical care when you're out of the country.

Confusion over Medicare Has Left Seniors Unprepared for Health Care Debt

Although millions are now enrolled in Medicare in order to pay for their health care needs, many remain unprotected simply due to a lack of understanding about the intricacies of the Medicare system. One of the biggest misunderstandings involves the Medicare "pre-approved" amount. Medicare only pays for 80 percent of a standardized amount for procedures. That doesn't stop doctors from charging more; it just shifts the burden of payment onto the patient. Doctors can continue to charge their regular fee, Medicare can continue to pay its standard payment and it's up to you to make those ends meet. Getting the right information is crucial to getting the most out of Medicare, and Medicare supplement insurance is one key to bridging the gaps in Medicare coverage.

By Wiley Long - President, MedigapAdvisors.com - The nation's leading independent agency specializing in Medicare Supplemental Insurance. Our professional MediGap advisors look forward to the opportunity to help you get the best insurance for your Medicare needs.

New Medicare Supplement Plans Are Available Now

Medicare does not cover all health costs. There are gaps in the coverage. Some or all of these gaps can be filled by additional insurance purchased from private insurance companies. These plans are known as Medicare Supplement Insurance Plans or Medigap Plans. There are currently twelve plans available, identified by letters A through L.

Since Medicare Supplements are standardized by government regulations, all Medicare Supplement insurance companies are regulated as to what provisions and what policies they can offer. That does nott mean the prices are the same. There can be a big difference in premium costs for the same plan, depending on which insurance company you choose.

First, a little background information:

The Medicare Prescription Drug Improvement and Modernization Act of 2003 (also called the Medicare Modernization Act) was signed into law In December of 2003. Prior to this Act, Medicare did not provide for outpatient prescription drug benefits. This Act created Medicare Part D, to give access to prescription drug insurance coverage for those eligible for Medicare Part A or who were enrolled in Medicare Part B. This coverage began on January 1, 2006 and is administered by private health plans.

The Medicare Modernization Act (MMA) also encouraged the National Association of Insurance Commissioners (NAIC) to modernize the Medicare supplemental insurance marketplace. NAIC developed a revised Medigap Plan model.

On July 15, 2008, Congress enacted the Medicare Improvements for Patients and Providers Act (MIPPA) that authorized the states to put the NAIC's changes into effect. Congress felt that Medigap insurance had not kept up with some of the changes in Medicare, so the 2010 Medicare Supplement changes are, in effect, an effort to modernize the Medigap Insurance market by dropping some coverage options and adding others.

Summary of changes for 2010 Medigap plans purchased on or after June 1, 2010:

? Preventative Care will be dropped from all 2010 Medicare Supplement plans

? At-Home Recovery benefit will be dropped from all 2010 Medicare Supplement plans

? Medigap Plans E, H, I and J will no longer be available for new sales

? Two new Medigap Plans -Supplement Plan M and Supplement Plan N will be available in June 2010

? Plan G will be modified to increase excess charges from 80% to 100%

? A New Hospice Benefit will be added to all plans

? Insurance carriers will be allowed to offer plans that include New or Innovative Benefits, such as hearing aid benefits or eye wear. They may not include outpatient prescription drug benefits.

Current underwriting guidelines for these new 2010 Modernized Plans allow the application dates to be written 60 days prior to the effective date of coverage. This means that the new Plan M and Plan N can be acquired now.

The new Medicare Supplement Plan M will be standardized as is all the current plans available.

This plan uses what is known in the insurance industry as cost-sharing in an effort to reduce monthly premium costs. You would see a slightly lowered premium, but would split the cost of Medicare Part A deductible ($1,100 in 2010) with the insurance company. This means that your Part A deductible would be $550.

Medicare Supplement Plan M does not cover any of the Medicare Part B deductible. Once you meet this Part B deductible ($155 in 2010) you would not have any co-pay for doctor visits. We think this will in effect reduce this plans monthly premiums by 15% compared to the popular existing Medicare supplement Plan F premiums.

Medicare Supplement Plan M does cover the basic Core Benefits including full coverage for the Part A daily inpatient hospital coinsurance charges, all costs of hospital care after the Medicare benefit is used up, Part B coinsurance charges, the first three pints of blood, and now the Part A hospice coinsurance charges for palliative drugs and has the foreign travel emergency benefits. Hospice care is included (as it is in all Medicare Supplement Plans for 2010).

Take a close look at Plan N. From what I have learned so far, it looks to become one of the most popular plans because of its affordability. Plan N also uses cost-sharing in an effort to reduce monthly premium costs. In order to lower the monthly premium costs, unlike Plan M, Supplement Plan N uses co-pays. Co-payments for doctor visits are $20 and $50 for emergency visits. Currently the co-pay system is set to go into effect after the Medicare Part B deductible is met.

Look for Plan N as a cost effective alternative to Medicare Advantage Plans. It offers a better solution than Medicare Advantage because Plan N has no network restrictions and much lower out-of-pocket liabilities to the client.

Medicare Supplement Plan N has 100% coverage for the Part A inpatient deductible. It does not cover the Part B deductible. Insurance companies are estimating this will in effect reduce this plans monthly premiums by 30% - 35% compared to the popular existing Medicare supplement Plan F premiums.

Medicare Supplement Plan N does cover the basic Core Benefits including full coverage for the Part A daily inpatient hospital coinsurance charges, all costs of hospital care after the Medicare benefit is used up, Part B coinsurance charges, the first three pints of blood, and now the Part A hospice coinsurance charges for palliative drugs and has the foreign travel emergency benefits. Hospice care is included (as it is in all Medicare Supplement Plans for 2010).

It's almost impossible to call all the insurance companies that offer Medicare Supplement Plans in your state to find the best prices on premiums. Your best bet is to contact a company that can find the best prices among all the insurance companies that service your area. One such source would be http://www.medigap4seniors.com

Medicare Reimbursement Cuts - A Policy Perspective

This article will evaluate the challenges associated with Medicare reimbursement cuts. The amount of expenditure in this program has skyrocketed since its inception in 1965 despite various measures to control growth. Short-term legislative fixes have been buying time for the development of long-term solutions while various stakeholders stand to win and lose as they are faced with forthcoming reimbursement cuts. Among these stakeholders are the federal government, politicians, third-party payers, Medicare recipients, and healthcare providers. Foreseeable problems exist in implementing reimbursement cuts including barriers to patient care and the financial viability of healthcare providers who rely on Medicare patient revenues. Continual debate over short-term Medicare cuts will be eclipsed by policy changes related to the viability of the program and long-term sustainable healthcare funding and delivery systems.

Introduction

Health care spending currently accounts for 16% of the gross domestic product of the United States (Getzen, 2007). New technology and higher incomes have increased overall healthcare spending and driven up costs. The question raised, is how health care expenditure will be controlled within government programs like Medicare. The formation of Medicare and Medicaid by the Social Security Acts of 1965 established the government as a major payer in health care. Regular reimbursement through government funding allowed hospitals and other institutions to grow in size, capacity, and capital. Controlling growth and costs has become a major concern as proportional expenditure on healthcare has increased. Of the various cost-containing measures employed to control expenditure, reimbursement cuts are some of the most contentious issues.

Background and Significance

Medicare has evolved in numerous ways since its inception in 1965. Physicians were initially reimbursed by the program for services covered and were able to bill patients for non-covered costs. Hospital reimbursement methods also followed similar patterns until a change was made in 1983 from "reasonable cost" to the prospective payment system based on diagnostically-related groups. In 1992 the physician fee schedule replaced the charge-based system. The Sustainable Growth Rate (SGR) of 1998 was created to control spending even further. Annual targets for spending are established and physician payments are reduced if spending exceeds these limits.

The bulk of today's Medicare costs are different than those of the past. A larger portion of expenditure is attributable to outpatient services covered by Part B of Medicare. This expenditure has consistently exceeded the established formula as specified in the SGR. Forthcoming adjustments in the form of reimbursement cuts propose major problems for physicians receiving reimbursements for services rendered to their Medicare patients. "Whereas over the next several years the SGR formula will cut doctors' reimbursement by an estimated 25 to 35 percent...[and] deep cuts in physician reimbursement will force many doctors out of the Medicare program and leave many patients without access to a physician (H.R. 863 IH, 2007)." These cuts will have a significant impact on physicians and hospitals, and may exacerbate healthcare access barriers to Medicare recipients. New reimbursement cuts are especially troubling in light of evidence that the expansion of Medicare reimbursements to new areas of care can benefit patient health (Gross et al., 2006). The types and amounts of cuts to be made are largely dependent on legislation and actions on Capitol Hill.

Legislation

Legislative action on Medicare cuts is ongoing. A recent (February 14th, 2008) amendment was proposed in the House of Representatives to adjust conversion factors in Part B of title XVIII of the Social Security Act, increasing Medicare payments for physicians' services through December 31, 2009. These adjustments are temporary fixes in the challenge to create long-term solutions: "The purpose of this Act is to allow adequate time for Congress to determine an appropriate long-term solution for Medicare physician reimbursement rates (H.R. 5445 IH, 2008)." Legislative fixes are influenced by the various groups that are potentially affected by these cuts. Language in these resolutions seems to indicate this. A resolution on December 11th, 2007 in the House expresses the sentiment "...that the Medicare physician payment system must be immediately reformed in a long-term manner in order to stabilize Medicare payment to doctors, return equity to the program, and ensure that Medicare patients have access to a doctor of their choice (H.R. 863 IH, 2007)." Congress is continuously tuning reimbursement-related legislation to slow uncontrolled growth while appeasing powerful constituencies and interest groups.

The executive branch also plays a major roll in the determination of alternate Medicare cuts. The Bush Administration recently proposed a measure to control the explosive growth in the program. On February 18th, 2008, "the Bush administration...submitted a measure to Congress to reduce Medicare spending by increasing prescription drug plan premiums for higher-income beneficiaries and by increasing the use of health information technology, such as electronic health records, among other provisions (Carey, 2008, p.1)." This move was triggered by a condition of the 2003 Medicare law. When a financial warning is issued by Medicare trustees the administration is mandated to submit legislation reducing program spending or increasing revenue. "The warning is issued when trustees for two consecutive years predict that federal general fund revenue must be used to pay for 45% or more of total Medicare costs within seven years (Carey, 2008, p.1)." Monies required to pay for Medicare exceed allotted funds and the program's encroachment on other fund sources is closely monitored.

Stakeholders

Among the major stakeholders in this issue are the federal government, politicians, third-party payers, Medicare recipients, physicians and hospitals.

The federal government stands to win by moderating uncontrolled growth in the Medicare program. In recent years total expenditure and federal reimbursement has exceeded target rates. "By the 2000-2004 period, society was willing to devote over 20 percent of the cumulative increase in GDP and the cumulative increase in Federal outlays towards health care (Hartman, Smith, Heffler, & Freeland, 2006, p.41)." The growing size of Medicare threatens to encroach on other fund sources and programs. It is in the best interest of the federal government to reform Medicare and keep expenditure within manageable boundaries. Despite the benefits involved in implementing cuts, the types of cuts which are made have the potential for backlash. Cuts to reimbursements are exceptionally contentious in the healthcare community. The federal government must seek and implement responsible controls to mitigate harm while effectuating reform.

Politicians are another group affected by policies on reimbursement cuts. Their role is fairly complex as their duties and functions are reflective of the competing interests of different populations, groups, and political parties. Expenditure reduction and reimbursement cuts affect a wide range of constituents in different manners. The role of Medicare reimbursement cuts in political decision-making depends on how these groups are impacted. Politicians may win or lose depending on how the effects of these cuts unfold. The amount of healthcare lobbying that takes place on Capitol Hill speaks to the magnitude of interests involved.

Third party payers are heavily influenced by Medicare reimbursement methodologies. Medicare reimbursement cuts may likely equate to reimbursement cuts by other third-party payers, thus exacerbating many of the problems experienced by healthcare providers. Significant resentment already exists from problems associated with current reimbursements models and additional cuts may hurt payers in the short-run. In the long-run payers will benefit from moderated expenditure and more stable growth rates.

Medicare recipients are another prime group affected by cuts. A major concern associated with reimbursement cuts is the reduction of benefits and programs to these recipients. Technological advancement has provided patients with a vast array of services, procedures, and pharmaceuticals. Benefit and program cuts may translate into a reduction of these features which they have become reliant on. Reimbursement cuts may also contribute to barriers in accessing care. Lower reimbursements from Medicare may lead providers to be less inclined to accept new Medicare patients. Studies have already been conducted on barriers associated with general and specialized care related to payer type. In a study conducted on appointment setting for dermatology patients, "...some access limitations in hot spots where Medicare payments are low relative to commercial insurers suggest that patients in these areas may be most sensitive to further payment reductions (Resneck, Pletcher, & Lozano, 2004, p.85)." The case can be made that additional reimbursement cuts may further expand these "hot spots" for Medicare recipients. Additional barriers may emerge as the expected cuts related to the SGR come to fruition. In the short-term seniors stand to lose from reimbursement cuts but may benefit in the long-run from a more sustainable delivery system that can result from Medicare reform.

Physicians and hospitals stand to lose in the short-term. The healthcare community is at odds with current reimbursements models and believes that further cuts will significantly erode revenues. A study featured in Pain Physician acknowledges that "physicians in the United States have been affected by significant changes in the pattern[s] of medical practice...and escalating healthcare costs have focused concerns about the financial solvency of Medicare (Manchikanti & Giordano, 2007, p.607)." The payment rate cut which was released on July 12th, 2007 includes a 9.9% reduction. Many physician practices and hospitals will be drastically affected but may benefit in the long-run from programs that are moderated in growth and can remain solvent.

Implementation issues

Various groups are involved in seeking solutions to this problem including the Medicare Payment Advisory Commission (MedPAC), the Government Accountability Office, physician and hospital organizations, economists, and other interest groups. The U.S. Senate and House of Representatives are separately working on two different ways to alleviate the inconsistencies in costs and corresponding reimbursements while trying to establish long term sustainable solutions. One of the most significant implementation challenges is the financial fallout to providers relying on reimbursements (physicians, hospitals, and other affected providers). Medicare accounts for a sizeable portion of revenues to some health facilities and healthcare providers. Further reducing reimbursements for services will have a major financial impact and the healthcare community has been especially active in resisting additional cuts. Some of the most vocal groups have been providers and their affiliated interest groups. It is common to find multiple reimbursement-related articles in trade journals and specialty magazines. Certain specialties will be impacted more heavily than others and this is reflective in payment changes by CPT code.

Impact to Medicare recipients is another major implementation issue. Cost-containment may have negative effects on patient access to services and resulting health outcomes, though this is not generalizable across the board. At least one study has shown that health outcomes were not impacted for patients receiving treatment in hospitals affected by past reimbursement cuts (Volpp et al, 2005). Counterintuitive results from studies like this make implementation even more intricate and perplexing. Legislation must be drafted based on truly measurable effects to recipients, providers, and cost-containment goals.

Future direction

Medicare reimbursement reduction is a major policy issue affecting large strata of interests. Within government it is recognized that more time is required to generate sustainable strategies. Balancing long-term objectives with the immediate effects of cuts is a delicate matter. Policymakers will need to make difficult and calculated decisions about efforts to reduce healthcare spending. Some believe that a greater focus on preventive care has the potential to alleviate expenditure trends. A significant portion of current expenditure in Medicare and other programs comes from long-term maintenance of chronic conditions. This trend accounts for a large portion of uncontrolled growth. Medicare reimbursement cuts are merely stop-loss strategies in a losing equation rather than robust long-term solutions. A greater focus on preventive care has the potential to extend the viability of U.S. healthcare systems.

Chris Majdi
Transition Consultants
The practice sales and financing company
http://www.transitionconsultants.com/

Medicare Supplement - Common Terms

Medicare Supplement plans plug the Medicare holes so you do not have the out of pocket costs Original Medicare will leave you with. So let us talk about some of the common terms you need to be aware of with Medicare and a Medicare Supplement plan:

Common Terms:

California Open Enrollment - (Unique to California) the ability of a Medicare Supplement member to switch to another company each year on the month of their birthday. This is a guaranteed issue option. You cannot be denied the transfer because of health status.

Original Medicare - Run by the Federal government and provides both Part A and Part B coverage.

Medicare Part A - is the hospital coverage Medicare pays for. You are responsible for the $1,100 deductible each benefit period (60 days) you enter a hospital.

Medicare Part B - the out patient Medicare coverage for physician, specialist and surgery services. There is a $155 Part B annual deductible you will need to pay the beginning of each calender year when you see a physician.

Part B premium - All Medicare beneficiaries are required to pay for their Part B premium. In 2010 the monthly premium is $96.40. If your annual income is higher than $85,000 your premium increases to $110.50. (other rules apply).
Assignment - an arrangement whereby a physician or hospital agrees to accept the Medicare-approved amount as full payment for services and supplies covered under Part B. Medicare usually pays 80% of the approved amount directly to the physician after the beneficiary satisfies the Part B deductible of $155.00. The Medicare Supplement member pays the other 20%.

Skilled Nursing Facility - (Medicare Part A) A medical care facility used primarily for rehabilitation. Patients are typically in a Skilled Nursing Facility when they are recuperating from an accident, illness or surgical procedure. Medicare typically pays all costs except $137.50 per day. Medicare will not continue to pay for this service is the person has a degenerative condition. In other words, the patients condition should be improving, if not, the coverage is stopped and a long term care policy or medicaid is necessary to continue to pay for these services.

Medicare Part D - Medicare Prescription Drug Coverage. Helps cover the cost of prescription drugs. Must be purchased from a private insurance company.

Part B Coinsurance - After the Part B deductible, Medicare requires you to pay 20% of all Medicare eligible expenses for physician, specialist, ambulance and hospital outpatient services and supplies.

Excess Charges - When your medical bill for Part B services exceeds the Medicare eligible expense. For example; if the Medicare allowable charge for a certain visit or procedure is $100. Medicare Part B pays $80 and the Medicare Supplement pays the remaining $20, if the Medicare Supplement pays for Excess Charges. Some plans do not cover this extra charge.

Initial Enrollment Period - (IEP) Your enrollment is guaranteed if you apply for coverage before or within six months of enrolling in Medicare Part B.
The terms above are some of the most common terms pertaining to a Medicare Supplement plan and you should become familiar with these terms when purchasing a plan. Please contact a Medicare specialist for more information.

I have been assisting clients for over 20 years in the Health Insurance and Medicare Supplement market.

I live in Sacramento with my wife and three children, and offer my services throughout California, Nevada and Colorado. When I'm not busy helping clients, I'm usually fixing my kids flat tires, helping with homework, or fighting with my backyard vineyard.

Turning 65 - What About Medicare?

Once a person reaches the age of availability for medicare they have many questions surrounding what it covers and even more questions about medicare supplement insurance. This is insurance provided by private companies, for a fee, that allows for gap coverage. It is a way to supplement medicare and prepare for the unexpected. The cost for medical care is high, and when something unforeseen happens, the need for gap insurance becomes critical. No one should take the chance.

Once retirement age arrives, there is no excuse for not being prepared. Of course the recent economic downturn has hurt many retirement funds, and some people never saved properly to begin with. Still, medical expenses continue to eat a huge portion of the retired person's budget, and when an emergency arrives the importance for supplemental insurance is easy to see.

It is not a concern for whether or not to invest in supplemental insurance. It is a matter of which plan to use. The good news is that here are any number of plans available. The benefits vary and the price follows as expected. Those looking to make a purchase must make certain they are well aware of their many options before making the very critical decision of which plan to pursue.

There are ten standard plans for medicare supplement insurance, also knows as Medigap insurance. Some are more expensive than others, and some are not available in certain states. Where there are unavailable plans in some states, a plan that similarly matches is generally offered. This means that even in those states an equivalent level of benefits can be obtained for a similar price.

One thing of importance to note is that the benefit these plans offer are the same from one company to the next, however the premiums are frequently very different. Understand that paying more does not equal more benefits for a given plan. Even the process of making a claim is the same. There will surely be salespeople who indicate otherwise, however the law overrides their sales pitch ever time.

On the first of January of each year, adjustments are made to the price of the premium as a result of inflation. Because the benefits through a supplemental plan follow those of medicare, the premiums for the supplemental plane will increase for this reason every year.

Prices for these plans are set in three ways. One is called attained age. In this price plan, premiums will increase due to inflation as well annually every 1, 3, or 5 years. Still, this is often the least expensive option. The next is issue age. Cost here is based on a persons age when they sign up. There are no increases in premiums other than the annual inflation adjustment. Finally, community-rated plans offer premium prices based on geographic location.

So there are many options to chose from when one reaches the age of Medicare. It is important to understand all the benefits, the rules for the state you are in, and that paying a higher premium does not include better benefits. Take the time to become well versed in your options and chose the plan that is most suited to your personal needs. If you are looking for more information on Medicare, visit this Medicare blog.