Medicare
Medicare was signed into law in 1965 by Lyndon B. Johnson. It went into affect in 1966 to provide health insurance for those over the age of 65, those under the age of 65 with disabilities, and those with end stage renal disease.
Medicare consists of four parts as shown below. Part A and Part B together are known as original medicare.
Part A - Hospitalization
Part A covers items such as inpatient hospital care, skilled nursing facilities (not custodial or long-term care), hospice and some home care. If you worked and paid Medicare taxes for 10 years or 40 quarters, then Part A will be premium free for you. If you did not, then you can still pay for Part A.
Part B - Medical
Part B covers services like doctor's visits, outpatient care, lab test, and many preventive services including flu shots. In 2017, the premium is based on your income from 2015 as shown in the chart below. For most people starting Medicare in 2017, the premium is $134 per month.
| If your income in 2015 was | You pay (in 2017) | ||
| File Individual tax return | File joint tax return | File married and separate tax return | |
| $85,000 or less | $170,000 or less | $85,000 or less | $134 |
| above $85,000 up to $107,000 | above $170,000 up to $214,000 | N/A | $187.50 |
| Above $107,000 up to $160,000 | above $214,000 up to $320,000 | N/A | $267.90 |
| above $160,000 up to $214,00 | above $320,000 up to $428,000 | above $85,000 up to $129,000 | $348.30 |
| above $214,000 | above $428,000 | above $129,000 | $428.60 |
Part D - Prescription Drug Coverage
Orignal Medicare does not cover prescription drugs. Unfortunately, as we get older, most of us will end up taking medications. Prescription drugs can be one of our largest medical expenses as we get older. Prescription Drug Plans or PDPs, are purchased through Medicare authorized private companies. The PDPs vary from company to company by cost, deductible amounts, and by what medications are covered. I can help you compare plans and help you choose the correct one for you.
Part C - Medicare Advantage
Medicare Advantage plans are administered by private insurnace companies. At a minimum, they have to provide Part A and Part B benefits. Some will include prescription drug coverage as well as some additional benefits such as dental and vision. Medicare Advantage plans are regional and you must live in the service area of a particular Medicare Advantage plan in order to use that plan. Some Medicare Advantage plans charge an additional premium beyond your monthly Part B premium. Some plans have no additional premium, but you must continue to pay your Part B premium.
Medicare Information
The booklets below are provided by the government and have a lot of valuable information.
Enrolling in Medicare
Valuable information about who should apply for Medicare, when you should apply, and how to apply.
2017 Medicare & You
This booklet provides up to date information on Medicare benefits and costs.
Choosing a Medigap PolicyInformation about Medicare Supplement plans and tips for choosing the one that best fits your needs.