Medigap Options

Health care reform has sparked heavy debate regarding the appropriate supplement for Medicare. It is widely known that seniors ages 65 and above are eligible for government medical aid (Medicare) to assist in healthcare cost. Medicare covers a portion of senior's medical cost. Although government assistance is available, many seniors still lack ample funds to cover the holes in Medicare. Thus, seniors are left to decide whether to adopt a Medicare advantage plan or to simply adopt a supplement for Medicare.

Though this segment is dedicated to the appropriate supplement for Medicare it is prudent to explain differences in what Medicare advantage plans would provide as well. As stated above traditional Medicare covers certain medical needs for seniors. The government covers (by paying doctors and hospitals) certain senior medical needs based on a fee for service schedule.

There are options for seniors to be covered by an advantage plan with 0 out of pocket monthly . It goes without saying that where one medical plan may be ideal for an individual; the same medical plan may fall short of covering another individual's needs. Advantage plans are plans in which the government pays insurers a specific amount monthly for every Medicare member that they enroll (the plans cover hospitals and doctors as well).

Individuals covered under advantage plans are able to choose HMO plans which require advantage recipients to choose from a network of health care providers as well as PPO plans which allow for in network providers as well as out of network providers. It should be noted that individuals going outside of the network would likely have to pay additional fees. All advantage plans offer the same benefits (regardless of the insurer). However, the benefit to the Medicare Advantage plans is that they cover things such as hearing, vision and dental care whereas traditional Medicare plans do not. Medicare Advantage has become increasingly popular due to the advantages provided over and above traditional Medicare.

However, that is precisely the issue that critics raise. Advantage plans are said to "pay out" more than traditional Medicare plans. The congressional budget office has estimated that over 150 billion additional dollars has been spent in the last 10 years on advantage plans (that would not have been spent with standard Medicare). Ultimately, the additional expenditures mean more money spent by taxpayers. Which is why Medicare Advantage plans have been targeted by government and health care reform.

With Medicare Advantage plans being heavily scrutinized and funding likely to be cut at least to some extent, supplements are becoming more appealing. Where advantage plans offer 0 out of pocket, a supplement for Medicare would require some payment by the senior. Where advantage plans replace traditional Medicare, a supplement for Medicare is literally that€a supplement that covers certain holes left by traditional Medicare. Therefore, Medicare is considered the primary plan and a supplement for Medicare is considered secondary to the plan.

Medigap plans are also offered through private insurers at specific cost. Medicare supplement plans are also considered Medigap plans as they fill the gaps left by Medicare. Gaps such as Deductibles, Coinsurance and Co-pays can be filled with an appropriate supplement for Medicare. Any doctor that accepts Medicare should accept a supplement for Medicare. Medicare participants must be enrolled in Medicare part b in order to be eligible to buy a Medigap plan. Medicare part b covers things like doctor services, outpatient care, home health services as well as some preventative services.

There are several Medigap plans available and participants typically need not go through underwriting if they will attain the age of 65 within the next 6 months(and two months following their 65th birthday). Open enrollment occurs from November 15th through December 31st and this is the time that changes may be made by existing supplement users. Medigap options vary and are labeled A through L. Each plan offers different options to fill the holes left by traditional Medicare plans.

Core benefits include hospital coverage for specific periods during Medicare benefit period, approved hospital cost for co-payments during specific periods, skilled nursing coinsurance, doctor deductibles, foreign travel emergency coverage, at home recovery, drug benefit as well as preventative care. Benefits vary from plan to plan and may be viewed in the Medicare handbook.

Supplement For Medicare

Health care reform has sparked heavy debate regarding the appropriate supplement for Medicare. It is widely known that seniors ages 65 and above are eligible for government medical aid (Medicare) to assist in healthcare cost. Medicare covers a portion of senior's medical cost. Although government assistance is available, many seniors still lack ample funds to cover the holes in Medicare. Thus, seniors are left to decide whether to adopt a Medicare advantage plan or to simply adopt a supplement for Medicare.

Though this segment is dedicated to the appropriate supplement for Medicare it is prudent to explain differences in what Medicare advantage plans would provide as well. As stated above traditional Medicare covers certain medical needs for seniors. The government covers (by paying doctors and hospitals) certain senior medical needs based on a fee for service schedule. There are options for seniors to be covered by an advantage plan with 0 out of pocket monthly. It goes without saying that where one medical plan may be ideal for an individual; the same medical plan may fall short of covering another individual's needs. Advantage plans are plans in which the government pays insurers a specific amount monthly for every Medicare member that they enroll (the plans cover hospitals and doctors as well). Individuals covered under advantage plans are able to choose HMO plans which require advantage recipients to choose from a network of health care providers as well as PPO plans which allow for in network providers as well as out of network providers. It should be noted that individuals going outside of the network would likely have to pay additional fees. All advantage plans offer the same benefits (regardless of the insurer). However, the benefit to the Medicare Advantage plans is that they cover things such as hearing, vision and dental care whereas traditional Medicare plans do not. Medicare Advantage has become increasingly popular due to the advantages provided over and above traditional Medicare. However, that is precisely the issue that critics raise. Advantage plans are said to "pay out" more than traditional Medicare plans. The congressional budget office has estimated that over 150 billion additional dollars has been spent in the last 10 years on advantage plans (that would not have been spent with standard Medicare). Ultimately, the additional expenditures mean more money spent by taxpayers. Which is why Medicare Advantage plans have been targeted by government and health care reform.

With Medicare Advantage plans being heavily scrutinized and funding likely to be cut at least to some extent, supplements are becoming more appealing. Where advantage plans offer 0 out of pocket, a supplement for Medicare would require some payment by the senior. Where advantage plans replace traditional Medicare, a supplement for Medicare is literally that...a supplement that covers certain holes left by traditional Medicare. Therefore, Medicare is considered the primary plan and a supplement for Medicare is considered secondary to the plan. Medigap plans are also offered through private insurers at specific cost. Medicare supplement plans are also considered medigap plans as they fill the gaps left by Medicare. Gaps such as Deductibles, Coinsurance and Co-pays can be filled with an appropriate supplement for Medicare. Any doctor that accepts Medicare should accept a supplement for Medicare. Medicare participants must be enrolled in Medicare part b in order to be eligible to buy a Medigap plan. Medicare part b covers things like doctor services, outpatient care, home health services as well as some preventative services. There are several Medigap plans available and participants typically need not go through underwriting if they will attain the age of 65 within the next 6 months(and two months following their 65th birthday). Open enrollment occurs from November 15th through December 31st and this is the time that changes may be made by existing supplement users. Medigap options vary and are labeled A through L. Each plan offers different options to fill the holes left by traditional Medicare plans. Core benefits include hospital coverage for specific periods during Medicare benefit period, approved hospital cost for co-payments during specific periods, skilled nursing coinsurance, doctor deductibles, foreign travel emergency coverage, at home recovery, drug benefit as well as preventative care. Benefits vary from plan to plan and may be viewed in the Medicare handbook. You may also view supplement for Medicare options by searching Medicare resources at the Texas low cost health insurance site.

http://www.texaslowcosthealthinsurance.com, Medicare resources

Medicare Coverage For Home Care and Skilled Nursing Care

One of the biggest myths about Medicare is that it pays for long-term care. It doesn't. Medicare covers only limited periods of inpatient care in a skilled nursing facility, and skilled nursing care and therapy at home, under strict guidelines. Still, Medicare's coverage of these services can be vital if the person you're caring for has just been hospitalized or has otherwise suffered a serious medical event. Medicare can pay for costly short-term, intensive rehabilitation, which in turn can give you a chance to arrange for longer-term care if it's needed.Medicare coverage of inpatient care in a skilled nursing facility is a standard part of Medicare Part A. Someone already enrolled in Part A doesn't have to do any special paperwork to receive nursing-facility coverage.Skilled care at home can be covered by either Medicare Part A or Medicare Part B, under slightly different rules. Persons enrolled in either Part A or Part B can receive coverage for skilled home care without any additional Medicare enrollment.

"Nursing home" or "nursing facility" can refer to different levels of inpatient care in different types of places, including rest homes, nursing homes, board-and-care homes, assisted-living facilities, congregate living homes, and sheltered care homes. All of these provide what is called custodial care, which is long-term residence and nonmedical assistance with the activities of daily living -- such as bathing, eating, walking, and dressing -- for people who don't have acute medical conditions but who are no longer able to care for themselves completely. This type of custodial long-term care is not covered by Medicare.At the other end of the spectrum is a much higher level of inpatient medical care, referred to as skilled nursing or rehabilitation care. Under certain circumstances, Medicare Part A covers this skilled care for a limited time while a patient is recovering from a serious illness, condition, or injury. This care is usually provided in the nursing-facility wing of a hospital, in a separate skilled nursing facility, or in the skilled nursing part of a "multilevel" nursing or rehabilitation facility.

In order for someone to receive Medicare Part A coverage for inpatient nursing-facility care, a number of different conditions have to be met:

Prior hospital stay: A patient's stay in a nursing or rehabilitation facility has to begin within 30 days of an inpatient hospital stay of at least three days.


Need for daily skilled nursing or rehabilitation: Medicare covers an inpatient nursing-facility stay only if the person needs, and his or her physician prescribes, daily skilled nursing care or physical rehabilitation. For someone who needs skilled care but doesn't need it every day, Medicare will not cover an inpatient stay; instead, Medicare might cover home care.

Medicare-approved facility: For Medicare to cover inpatient skilled nursing or rehabilitation care, the care must be received in a facility that Medicare has certified for that purpose.

Improving condition: Medicare covers inpatient skilled nursing care only as long as the patient's condition is improving. Once Medicare, the patient's doctor, and the facility have determined that his or her condition has stabilized, Medicare will no longer cover inpatient care.

If, and as long as, a patient meets the qualifying conditions described above, Medicare will pay a limited amount for inpatient nursing-facility care.For the first 20 days in the facility, Medicare pays all covered charges -- excluding only items like a telephone or television or a private room if not medically necessary.For days 21 to 100 in a nursing facility during any one benefit period, Medicare no longer pays any of the cost.

If a patient needs skilled nursing or rehabilitation care at home, either Medicare Part A (following a minimum three-day hospital stay) or Part B (no hospital-stay requirement) can cover it. The care may be provided in the patient's home or anywhere else he or she stays. If a patient meets the requirements to qualify for home care (see "How does someone qualify for Medicare coverage of at-home care?" below), Medicare can cover skilled nursing care and physical and speech therapy as needed while the patient recovers from an illness, condition, or injury. Medicare also covers needed medical supplies and equipment.Medicare doesn't generally cover nonmedical at-home care and assistance, including meals and housekeeping. However, if a patient is getting Medicare coverage for skilled nursing or therapy at home, Medicare generallys pays for limited visits by an aide from a home care agency to help him or her with personal care. If Medicare covers skilled care for the patient, it can also cover the services of an occupational therapist to help him or her relearn how to accomplish daily personal care and household tasks safely.

For Medicare Part A or Part B to cover a patient's at-home care, several conditions have to be met:

Need for part-time skilled care: The patient must have a medical need for, and his or her doctor must prescribe, skilled nursing care or rehabilitative physical or speech therapy. The care must be needed part-time only, to help recover from a specific illness, injury, or acute condition. If, instead, the patient needs care because of a long-term condition or general frailty, Medicare will not cover it. Nor will Medicare cover full-time or daily care.

Confinement to home: Medicare covers at-home care only if and for as long as the patient is "confined to home." This means that he or she is unable to leave home without difficulty and with the assistance of another person or a medical device such as a wheelchair. However, it doesn't necessarily mean bedridden.

Recovery period: At-home care is covered only while the patient is actively recovering, which means while his or her condition is improving. Once a patient's condition has stabilized, as determined by his or her physician, the home care agency, and Medicare, coverage ends.

Medicare-approved agency: Medicare only covers home care provided by a Medicare-certified home healthcare agency. Unfortunately, this leaves out registry nurses, private therapists, and independent caregivers.

If a patient qualifies for coverage of at-home care, Medicare pays the full amount of the home care agency's charges, except for the rental cost of durable medical equipment such as a wheelchair or hospital bed (for which Medicare pays 80 percent). Sometimes, a patient's medigap insurance policy will pick up this extra 20 percent; otherwise, patients have to pay for it personally. The home care agency is not allowed to bill patients for any amount above the Medicare-approved charges.Medicare doesn't put any specific limit on the number of home care visits it will cover, nor on the total number of days patients can be served by the home healthcare agency. But coverage will continue only as long as they meet all of the qualifying conditions for coverage. A patient's condition and needs are regularly evaluated by the agency and by Medicare itself to determine how long the agency's care is medically needed and thus how long Medicare will keep paying.

If the person you're caring for is in the hospital and you're looking for answers about follow-up nursing-facility or home care, contact the hospital's discharge planner, who arranges both of these types of care, or the hospital ombudsman, who is trained in Medicare issues and helps patients understand them.Even if he or she isn't currently in the hospital, you can get information about nursing-facility and home care coverage directly from Medicare's website or by calling (800) 633-4227. If he or she has been referred to a particular nursing facility or home care agency, the intake administrator for that service can also help with Medicare-related questions or problems.

http://www.caring.com/articles/medicare-home-care

[http://www.caring.com/articles/medicare-coverage-for-skilled-nursing]

Medicare Coverage For Mental Health and Alzheimer's Care

Modern medicine recognizes that many mental and emotional problems are in fact physical illnesses or related to them. So, with either Medicare Part A hospital insurance plus Medicare Part B medical insurance, or with a Part C Medicare Advantage managed care plan, participants have extensive coverage for treatment of mental or emotional illness, including depression, Alzheimer's disease, and other forms of dementia. This includes both inpatient and outpatient care, and treatment not only by doctors but also by other Medicare-certified healthcare providers. The amount of coverage Medicare provides depends on the kind of hospital where the person receives care.

Care in a general hospital.If the inpatient care she receives is in a general, nonpsychiatric hospital that treats patients for all types of illness, the rules of coverage are the same as for any other hospital stay. That is, under Medicare Part A, she must pay a deductible, plus daily co-payments for a stay of more than 60 days within any one benefit period. If she's in the hospital for more than 90 days in any one benefit period, Medicare Part A pays part of the cost of up to 60 more once-in-a-lifetime "reserve days". However, there's no lifetime limit on the number of hospitalizations that Medicare Part A will pay for. If she has a Part C Medicare Advantage managed care plan, it pays for at least this same amount of inpatient care, and some plans pay more of the cost.
Care in a psychiatric hospital.If she's an inpatient in a psychiatric hospital -- meaning one that accepts patients only for mental health care -- the rules of payment are the same as for a general hospital but the total amount of coverage is different. Medicare Part A covers only a total of 190 days in a patient's lifetime for inpatient care in a psychiatric hospital.

Nursing facility care. The single most important thing to understand about Medicare and nursing facilities is that Medicare does not pay for long-term care. However, under limited circumstances and for a short time, Medicare Part Aor a Medicare Advantage managed care plan can cover a stay in a skilled nursing facility while the person is recovering from a severe mental health episode that landed her in the hospital. The nursing facility stay must follow, within 30 days, a hospital stay of at least three days. And the nursing facility stay must be medically required and prescribed by her doctor to provide her with daily skilled nursing or rehabilitation services while she's recovering from the medical event that put her in the hospital. The coverage can last for up to 100 days, with Medicare paying the full amount for the first 20 days and your family member having to make a co-payment of $133.50 (in 2009) per day for days 21 through 100. For more details about Medicare Part A nursing facility coverage, see our article Understanding Medicare Part A (Hospital Insurance). Home care. Home care is available under Medicare Part A, Part B, or Part C (managed care) if it's medically necessary for any illness or condition, including mental illness, Alzheimer's, and other forms of dementia. But the rules under which Medicare coverage is available for home care are quite strict, and coverage usually lasts only a short time. The key thing about Medicare coverage for home care is that it applies only to home healthcare. That means your family member must need skilled nursing care or rehabilitation therapy while she's confined to home because of an injury or illness. It doesn't cover assistance with the activities of daily living such as dressing, bathing, walking, or eating unless these are provided incidentally, alongside required skilled medical care. A doctor must prescribe the home care and it must be provided by a Medicare-certified home healthcare agency. If the person in your care qualifies, Medicare pays 100 percent of the agency's costs. But the care can continue only as long as the skilled nursing or therapy is required, while she's actually recovering. Home healthcare is covered by Medicare Part A following a hospital stay, or by Medicare Part Bif there has been no prior three-day hospital stay. If she's enrolled in a Part C Medicare Advantage managed care plan, that plan provides home care under the same rules, except that the home care agency must be associated with the specific managed care plan.

Psychological care. Psychological counseling is not technically medical care. But under some circumstances, Medicare Part B or Medicare Part C managed care will cover counseling by a clinical psychologist. The person's doctor must prescribe the treatment. The psychologist must be certified by Medicare. And the psychological care must relate to a problem -- such as depression or anxiety -- arising out of a medical condition for which the doctor is treating her. If she's suffering emotionally from the strain of a physical illness, suggest that she discuss the problem with her doctor. If she and the doctor believe she might benefit from psychological counseling, Medicare Part B or her Medicare Advantage managed care plan might cover the care. The office of the psychologist she's referred to can find out in advance from Medicare whether it would cover her treatment there. Adult daycare. In general, adult daycare provides personal monitoring and attention with structured activity in a secure environment. Medicare usually considers this type of care "custodial" rather than medical and so usually doesn't cover it. Medicare can cover services from an adult daycare center only in very limited circumstances. Medicare might cover actual mental health treatment, prescribed by a physician, provided at an outpatient mental health clinic. If this clinic is also an adult daycare center, the patient can get the benefit of the center's other care services while receiving treatment there. Medicare will cover this kind of care only if, and for as long as, it involves actual medical treatment -- administration and monitoring of medication, for example, or help with recovery from a medical crisis. Also, some Part C Medicare Advantage managed care plans offer limited adult daycare coverage as part of their comprehensive home care services. Medicare doesn't require that these plans offer this, so the nature and extent of what they cover depends entirely on the plans themselves. Finally, Medicare partners with Medicaid to sponsor what's called the Program of All-Inclusive Care for the Elderly (PACE). This provides comprehensive home and community care, including adult daycare, for frail elders who would otherwise require nursing home care. PACE is only available in certain states, however. And in those states, it may be available only to those who are eligible for both Medicare and Medicaid. See Medicare's official website at medicare.gov for a list of PACE programs.

Therapeutic services for Alzheimer's patients. For a long while, Medicare didn't consider various therapies for people who had been formally diagnosed with Alzheimer's disease medically necessary, and so did not cover them. This policy has changed. If the person in your care has been diagnosed with Alzheimer's, Medicare Part B can now cover physical, occupational, and speech therapy for her, as well as psychological counseling and other mental health services. Her doctor must prescribe the treatment, however, and it must be provided by a Medicare-certified therapist or mental health provider. Medications for mental health conditions.Any medication administered to someone when she's a hospital or nursing facility inpatient, whether or not she's an Alzheimer's patient, is covered by Medicare Part A. Any medication given to her at her doctor's office or at any outpatient health facility is covered by Medicare Part B. Things get much trickier with prescription drugs taken at home. The only coverage Medicare provides for at-home medications is through a Medicare Part D prescription drug plan. Coverage for specific drugs the doctor may prescribe for mental health issues depends on the formulary -- the covered list of drugs -- that her plan maintains. There's a special prohibition, however, on certain drugs that are often prescribed to cope with mental health issues. Medicare doesn't permit a Part D prescription drug plan to cover any medication within the categories of barbiturates (certain sedatives) and benzodiazepines (certain tranquilizers), even if a physician has prescribed it. So if she's taking one of these drugs, and she'd like to have coverage from her Part D drug plan, ask her doctor whether a similarly effective drug might be available that does not technically fall into either of these categories.

http://www.caring.com/articles/mental-health-coverage
http://www.caring.com/articles/medicare-coverage-for-long-term-care

Medicare Advantage Plans Draw Attention

News outlets examine several issues dealing with Medicare Advantage plans.

The Boston Globe: "Harvard Pilgrim Health Care has notified customers that it will drop its Medicare Advantage health insurance program at the end of the year, forcing 22,000 senior citizens in Massachusetts, New Hampshire, and Maine to seek alternative supplemental coverage." The reason is that federal reimbursements for such plans have been frozen, and Harvard's particular Advantage product, a private fee-for-service plan, would have to develop a network of contracted providers for the first time under the new rules (Weisman, 9/28).

Also in Advantage news, PolitiFact examines a claim by former New York governor and health overhaul repeal advocate George Pataki that Florida seniors get a special deal on planned Medicare Advantage cuts. The conclusion: Pataki is wrong. "Congress is scaling back the payments to Medicare Advantage plans to bring them more in line on average to what is paid in Medicare. But it's too soon to say what that means for the average senior in various parts of the country while the reductions are being phased in over a few years" (Sherman, 9/28).

In other Medicare news, Crain's Detroit Business reports, "A pilot project begun last year to reduce hospital readmissions is being expanded this month to all of Michigan's 144 hospitals, according to the Michigan Health and Hospital Association. The purpose of the four-year study — called the State Action on Avoidable Rehospitalizations, or MISTAAR — is to reduce avoidable readmissions by 30 percent, save millions of dollars in unnecessary costs and improve quality and patient safety" (Greene, 9/27).

This is part of Kaiser Health News' Daily Report - a summary of health policy coverage from more than 300 news organizations. The full summary of the day's news can be found here and you can sign up for e-mail subscriptions to the Daily Report here. In addition, our staff of reporters and correspondents file original stories each day, which you can find on our home page.

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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.

A Little Bit Of Medicare History...

In the United States the Medicare system provides health insurance coverage for those who are above 65 years of age plus some other groups of people such as the disabled. This article reviews the history of Medicare in the US, from its founding in the Sixties, to the funding crisis faced today due to demographic changes, and to spiraling health care costs.

In a single-payer health care system there is one large insurance fund which covers the health care costs of the entire population, or a large group of the population. The single payer, which is usually the national government, collects the insurance premiums, usually in the form of a health tax. This money is then paid into the insurance fund, where it covers the health costs of the nation's population.

In 1961, in the US, Robert M. Ball (former commissioner of Social Security) recognized the obstacles to financing health insurance for older people. In simple terms, the old require more regular, and more costly medical treatment, on account of their age, while they have less disposable income to buy private health insurance because they are retired.

Ball therefore said that the only way in which health care could be funded for the elderly was to use the same mechanism which is used to fund retirement pensions. Payments should be collected from those who were in work, and able to pay, and the benefits should be provided after retirement.

Ball, and Medicare's supporters today, would argue that Medicare is not an unearned entitlement. It is a form of social insurance where people pay into the scheme when they are young, and able to work, and they draw out from the scheme when they are old, and sick. Although some people will pay in more than they get out, the scheme's supporters would still argue that is true of any insurance scheme.

Medicare has been opposed by many conservative US politicians including Ronald Reagan and George Bush Senior. These have often argued that Medicare was socialist medicine, would lead to a socialism and/or communism in America, and would lead to an end of individual responsibility.

Despite conservative opposition Medicare became US law in 1965. Lyndon B. Johnson was president at the time, and he enrolled as the first scheme member former president Truman, with Mrs. Truman as the second member.

Nowadays Medicare faces a severe funding challenge. There are two causes. Firstly the advances in medical science now mean that people tend to live much longer. This has caused a demographic shift towards an aging population. Those who are young, able to work, and required to contribute to Medicare through their taxes, are required to fund a health insurance fund for an ever increasing number of elderly beneficiaries from the scheme.

Secondly the costs of medical treatment have increased very rapidly, particularly for many new treatments which were not available when the scheme was set up in the 1960s.

The most alarming projections from the actuaries responsible for monitoring the fund, are that the health insurance fund will be insolvent by 2019. Resolving this funding crisis in American health care will therefore be one of the main priorities of US Federal governments in the next decade.

Supplemental Insurance For Senior Citizens

What Is Medicare?

Medicare is a federal health insurance program for senior citizens and disabled people. Most US seniors do qualify for Part A and Part B of Medicare. There is usually no additional premiums for qualified seniors if they choose Part A. There is a premium, though, which is less than $100 right now for most seniors on Part B. Most social security recipients have the Part B premium deducted from their social security checks so some are not even aware they are paying it.

Medicare is not a new program, and it has been around since the 1960's. So it has helped protect the health of retired and disabled Americans for over a generation now. But even though the traditional plan is not new, there are always new changes. So if you are concerned about Medicare, it pays to keep up. The US government provides a pretty good online resource at medicare.gov. This website can help you stay current, find additional Medicare health plans, and find contact information if you need it.

Why Do People Buy Medicare Supplements?

Even though Medicare is a very large program, it does not cover every medical service that an older or disabled person might need. In addition, there are plan copays, deductibles, and limits. Some beneficiaries choose to purchase a Medicare supplement to help them manage expenses.

What Is A Medicare Supplement?

A supplement, also called a medigap or medsup policy, helps pay copays and deductibles that Medicare does not cover. It is a very specific type of health insurance policy. Private insurers sell these plans, and they are meant to complement the original Medicare plan. A policy owner will be required to pay an additional plan premium for these plans. The cost will depend upon the level of the plan, the age of the covered person, the zip code it is issued for, etc. In this way, it is similar to any other sort of private health isurance plan.

Prescription Supplements

There a newer addition to the Medicare family, and these are called Medicare Part D or RX plans. They are also sold by private insurers, but some of the cost is paid from tax money so the qualified beneficiary will pay a smaller premium. These newer plans help pay for the cost of prescription drugs.

Should You Buy Supplemental Health Insurance?

There is not one right answer for everybody. Sometimes it can be hard to pay the premium on a tight budget. But it can be even harder to come up with the money to cover deductibles or copays if there is no supplement to help. Note that there are different levels of supplemental plans, and these levels provide different types of coverage and have different price tags.

How Much Does Supplemental Insurance Cost?

Let me repeat that the premium will depend upon the coverage level, age, and address of the covered person. There is not one right answer for every Medicare beneficiary. That is why there are so many different options. You should consider your options to find a plan and premium that will work out well for you!

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