August 18, 2011

Medicare Overview Video Transcript

How Does Medicare Work?

Hello,

Today, I want to give you a very brief overview of the types of coverage available to you when you begin shopping for Medicare. My goal is to help you can understand all your options so you are more prepared when you begin to do your research:

What is Medicare?

Medicare is a federal health insurance program that provides basic health insurance benefits for people age 65 and over, and for people under age 65 with certain disabilities.

What Medicare coverage choices do seniors have?

There are four parts of Medicare as well as one category of private insurance related to Medicare:

1. The first part is called Medicare Part A - which provides Insurance for hospital services.
2. The second part is called Medicare Part B - which provides insurance for medical services.

Medicare Parts A and Part B are often referred to as "Original Medicare."

3. The third part is an option called Medicare Part C - it can also be called Medicare Advantage. Medicare Advantage Plans are offered by private companies and provide all of your Part A and Part B coverage. Most also include prescription drug coverage (part D).
4. The fourth part is called Medicare Part D - which provides stand-alone prescription drug coverage.

There is an additional insurance option available to Medicare enrollees called Medicare Supplement Insurance -often called "Med-Sup" or "Medigap" insurance. Medicare Supplement insurance covers various gaps in Original Medicare but does not include prescription drug coverage.

Most seniors choose to structure their Medicare choices in one of three ways:

1. The first way is Original Medicare (Parts A & B) plus Medicare Part D (prescription drug coverage).
2. The second way is Medicare Advantage or Medicare Part C. Medicare Advantage provides all of your Part A and Part B coverage through a private company approved by Medicare. Medicare Advantage Plans often include prescription drug coverage (Medicare Part D).
3. The third way is Original Medicare (Part A & B) plus Medicare Part D (prescription drug coverage) plus Medicare Supplements (or Medigap).

Medicare Part C - Medicare Advantage

What is Medicare Advantage?

Medicare Advantage is a form of Medicare insurance coverage that is provided by private insurance companies. Medicare Advantage -Plans provide all of your Parts A and B coverage. When you sign up for Medicare Advantage, you're electing to receive your healthcare services through a private insurer instead of through Medicare.

Medicare Part C plans are available in most areas of the country, but they're not available everywhere.

Most people on Medicare Advantage will pay a monthly premium, or payment, to the insurance company for their benefits alongside their Medicare Part B premium.

Medicare Advantage plans typically include prescription drug coverage. So, if you have Medicare Advantage with prescription drug coverage included, you would not need to enroll in a separate Medicare Part D plan.

Medicare Part D - Prescription Drug Coverage

Medicare Part D is a prescription drug coverage provided by private companies.

Medicare Part D coverage helps Medicare recipients pay for prescription drugs that are not covered by Original Medicare - parts A & B.

Part D is available to anyone enrolled in original Medicare. You need to enroll in Medicare Part D separately from Parts A & B.

Medicare Part D plans have monthly premiums. Your annual cost depend on the plan you choose, on how many drugs you take, or on what types of deductibles and co-payments are associated with the plan you choose.

If you don't join a Medicare Part D prescription drug plan - or a Medicare Advantage plan that includes prescription drug coverage as soon as you become eligible, you may face a late enrollment penalty; that penalty is currently 1% of the "national base premium" for every month that you did not have creditable prescription drug coverage. This penalty would be added to your Part D premium once you enroll.

If you have creditable prescription drug coverage from another source, like a spouse's private health insurance plan, or a plan from your employer, you'll typically avoid this penalty.

If you're a senior, don't go more than 63 days in a row without a Medicare prescription drug plan or other creditable coverage.

Medicare Supplement Plans - Or Medigap Coverage

Medicare Supplement coverage - also known as "Med Supp", or "Medigap" - is health insurance sold by private insurance companies to fill the "gaps" in Original Medicare plan coverage.

If you're on Original Medicare - parts A & B - a Medicare Supplement policy will pay for a portion of your healthcare costs that original Medicare does not cover - not including prescription drugs.

In most cases, when you buy a Medicare Supplement policy you must have Medicare Part A and B.

If you're married, you and your spouse must each buy separate Medicare Supplement policies. Your Medicare Supplement policy won't cover any health care costs for your spouse.

Finally, Medicare Supplement plans typically do not cover prescription drug costs. So, if you decide to supplement your original Medicare coverage with a Medicare Supplement plan, you'll likely need to enroll in a Medicare Part D prescription drug plan.

Medicare Conclusions

In conclusion, most seniors choose to structure their Medicare choices in one of three ways:

1. The first way is: Original Medicare (Parts A & B) plus Medicare Part D (Prescription drug coverage).
2. The second way is Medicare Advantage or Medicare Part C. Medicare Advantage provides all of your Part A and Part B coverage through a private company approved by Medicare. Medicare Advantage Plans often include prescription drug coverage (Medicare Part D).
3. The third way is Original Medicare (Part A & B) plus Medicare Part D (Prescription drug coverage)plus Medicare Supplements (or Medigap).

For more information about your Medicare coverage options, visit www.planprescriber.com.