Medicare has been around for years, and it’s becoming more important than ever for Americans to understand how it works. Medicare is a big government program that helps older adults obtain health insurance. However, like all things, some quirks about Medicare can be confusing, particularly if one is nearing retirement age and wondering how to pay for medical expenses. Here’s how Medicare can be effective.
Coverage for The Needy
Medicare is a federal health insurance scheme created to provide medical coverage for individuals 65 years of age or older and younger people with disabilities. Medicare is administered by the federal government through its Centers for Medicare & Medicaid Services (CMS).
If Medicare didn’t exist, millions of seniors and people with disabilities would have a hard time finding insurance coverage. They would need to rely on private health insurance to pay their health care costs.
Wide Variety of Benefits
Medicare covers many different kinds of services, including inpatient hospital stays, outpatient surgeries, and medical equipment, like wheelchairs and walkers. Important preventive care is also covered by the program. In 2020 and 2021, Medicare began reimbursing all eligible beneficiaries for the COVID-19 test and treatment.
Low Monthly Premiums
Most people aren’t charged a special premium for Medicare Part A, and the standard premium for Medicare Part B is $148.50 per month. On the other hand, the average monthly premium a 40-year-old might pay for Marketplace (sometimes called Obamacare) coverage is $452 a month.
Public and Private Coverage
Medicare is a good example of the public sector and private sector working together. Medicare Parts A and B, which is the public component, pay for some health services needed by older adults and younger people with disabilities. The private portion – Medicare Advantage (Part C) plans, Medicare Part D prescription drug plans, and Medicare Supplement (Medigap) plans – can provide additional benefits or help pay certain out-of-pocket costs.
Simple Eligibility Requirements
Social Security and the Railroad Retirement Board provide disability benefits to people who can no longer work because of permanent disabilities. If one is above 65 and has lived in the U.S. as a citizen or legal permanent resident for five years, they qualify for Medicare. Those suffering from end-stage renal disease (ESRD) and amyotrophic lateral sclerosis (ALS, or Lou Gehrig’s disease) are eligible for Medicare benefits.