Establishing a national health insurance plan for senior Americans has followed a sometimes-wayward path through U.S. history.
President Teddy Roosevelt first began discussing the idea of implementing a system of health insurance in the United States more than a century ago. President Harry Truman called for developing a health insurance fund in 1945.
President John F. Kennedy pushed unsuccessfully to create a national health insurance program for senior Americans.
In 1965, President Lyndon B. Johnson signed legislation that established Medicare. More than 58 million people now receive health insurance through Medicare.
Medicare Covers About 80%
Medicare Health Plans for Seniors—which includes parts A, B, and D—does not cover all medical expenses. Typically, those on Medicare still must pay 20% of the cost of their doctor’s visits and for other medical procedures.
Medicare.gov provides more in-depth explanations of payment schedules and treatment coverage.
Most people who have Medicare Part A (hospital insurance) don’t pay monthly premiums.
If you didn’t pay Medicare taxes for at least 30 quarters (7½ years) of work, you’ll have to pay $422 for Part A. If you paid Medicare taxes for 30-39 quarters, your standard Part A premium will be $232 a month. If you ever need tax preparation services please reach out to us to make your life easier!
A Quarter of Medicare Recipients Have Supplemental Insurance
Nearly 12 million people on Medicare—about one in four—have supplemental Medigap coverage.
Medigap often covers all or most of the difference in health-care costs—that 20% not covered by Medicare. Policy and coverage choices include plans A, B, C, D, F, G, K, L, M, and N. Private companies provide the government standardized coverage.
Medigap covers copayments, coinsurance, and deductibles. Some policies provide coverage of services that Medicare doesn’t cover.
Medicare pays its portion of covered approved health-care services first before Medigap insurance pays its share.
Here are eight facts about how Medicare and Medigap work:
1.You have to have Medicare Parts A and B.
2.Medigap coverage is not Medicare Advantage, which is offered by private companies contracting with Medicare. Medicare Advantage includes:
-Health Maintenance Organizations
-Preferred Provider Organizations
-Private Fee-for-Service Plans
-Special Needs Plans
-Medicare Medical Savings Account Plans
3.Medigap charges monthly premiums for coverage. You also pay for Part B coverage.
4.Medigap only covers one person per policy. You and your spouse have to get separate policies.
5.Any state-licensed insurance company may offer Medigap coverage.
6.Renewal of standardized Medigap coverage is guaranteed. Your provider cannot cancel your policy if you’re paying your premiums.
7.Some Medigap policies sold before January 1, 2007 provided prescription coverage. Those sold after that date are legally prohibited from providing drug coverage. Medicare’s Part D plans cover prescription drugs.
8.You are not permitted to buy a Medigap policy if you already have a Medicare Advantage Plan, unless you’re dropping the plan to go back to Medicare.
If you’d like more information about your financial options or to learn more about your financial needs, schedule a free financial consultation with us today!
Important Disclosure Information
Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Dechtman Wealth Management, LLC [“DWM”]), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from DWM. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. DWM is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the DWM’s current written disclosure Brochure discussing our advisory services and fees is available for review upon request or at www.dechtmanwealth.com.
Please Note: DWM does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to DWM’s web site or blog or incorporated herein, and takes no responsibility for any such content. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.
Please Remember: If you are a DWM client, please contact DWM, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. Unless, and until, you notify us, in writing, to the contrary, we shall continue to provide services as we do currently.
Please Also Remember to advise us if you have not been receiving account statements (at least quarterly) from the account custodian.
Join our newsletter
"*" indicates required fields