Medicare Insurance Program Saves Money For Seniors

Posted by Matthew Wilder

July 11, 2009

by Peggy Arenas

The original Medicare benefit program, passed in 1965, was comprised of two parts. Part A contained the hospital part of the Medicare insurance coverage. Part B, specified the medical part of the Medicare insurance coverage. Parts C and D were later added to address additional health concerns.

Medicare’s Part A will cover a hospital stay of at least 72 hours, this is measured by the time of hospital admission and the time of release. Part A will also pay for a stay in a nursing home (as long as it is related to the aforementioned hospital stay) as long as there are skilled nursing personnel present. Part A of Medicare is offered for free, paid for by periodic payroll tax deductions during the patient’s working career.

Medicare insurance Part B is optional medical coverage. This Medicare insurance pays for some of the medical providers and services not reimbursed under Part A. Part B Medicare insurance can include lab tests, x-rays, doctor visits, certain outpatient procedures, flu vaccinations, and more.

Unlike Part A, Part B requires a monthly payment. At age 65 an individual is notified of their eligibility for Medicare, it is at this time they can decide whether or not to enroll in and pay for Part B. In 2006 the monthly premium for Part B was set at $88.50.

Part C Medicare insurance gave Medicare members the option to receive medical care through private insurance plans in beginning in 1997. The private plans replaced Part A/B Medicare insurance coverage. In 2003, the private plan changed and they were called Medicare Advantage (MA) Medicare insurance plans.

Part D Medicare was instituted on January 1st, 2006. Those eligible for Parts A and B were automatically approved to be in the Part D prescription drug plan. Part D allowed members to have one of several prescription drug plans.

Part D also lets you pay less for your prescriptions. A monthly premium, just like Part B, is required to participate in Part D. Each private insurance plan had separate restrictions and therefore caused a lot of confusion among everyone trying to select a plan.

There are some governmental agencies that predict a grim future for Medicare, saying the program may go bankrupt by 2018. The problem is that there are more people retiring and enrolling in Medicare than there are people paying into Medicare.

Just in 2005, Medicare was providing benefits to around 42.5 million people. Thanks to the Baby Boomers, Medicare is estimated to be providing coverage to at least 77 million people by 2031.

About the Author:

Find more articles on Medicare Part C at http://medicarenewsline.com

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