The Truth About
Medicare and Medicare
Supplements
Medicare was signed into law
on July 30, 1965. In general, all
persons 65 years of age or older
are eligible for Medicare.
Since then the primary benefits
for Medicare have been Part A
Hospital Insurance, and Part B
for Medical Insurance.
Part A and Part B benefits have
remained fundamentally the
same since 1965.
What is Medicare???


If you are approaching age 65 and
you already receive Social
Security you will be
automatically enrolled in
Medicare Parts A and B when you
turn 65.
Approximately 3 months prior to
your 65th birthday, Medicare will
send you an enrollment package
containing general information
about Medicare, a questionnaire
and your red-white-and-blue
Medicare card.
How Medicare Works…


Original Medicare is a fee-forservice plan that is managed
by the Federal government.
You can go to any doctor or
supplier that is enrolled in
Medicare and accepts new
Medicare patients.
You may be responsible for
any deductibles or copays
under Original Medicare Part
A or Part B.
How Medicare Works…



Part A is hospital insurance that helps
cover inpatient care in hospitals, skilled
nursing facility, hospice, and home
health care. Most people don’t pay a Part
A premium.
Part B helps cover medically-necessary
services like doctors' services,
outpatient care, home health services,
and other medical services. Most
Medicare beneficiaries will pay $96.40 or
$110.50 Part B premium amount in 2011.
These Original Medicare benefits
meet or exceed health care benefits
offered to most individuals prior
to age 65
Medicare Original Benefits…


A Medigap policy (also called
“Medicare Supplement
Insurance”) is private health
insurance that is designed to
supplement Original Medicare.
Every Medigap policy must
follow Federal and state laws
designed to protect you, and the
policy must be clearly identified
as “Medicare Supplement
Insurance.
Cost is usually the only difference
between Medicare Supplement
policies with the same letter sold
by different insurance companies.
Medicare Supplements…



You must have Medicare Part A
and Part B to buy a Medicare
Supplement policy
You can buy a Medicare
Supplement policy from any
insurance company that’s licensed
in your state to sell one.
Any standardized Medicare
Supplement policy is guaranteed
renewable even if you have health
problems. This means the
insurance company can’t cancel
your policy as long as you pay the
premium.
Medicare and Your Supplement
Example: Age 65 Plan F female
Medicare Part A
FREE
Medicare Part B
premium
$110.50
Medicare Supplement F* $130.00
Total premium
$240.00
Plan F contains comprehensive
coverage for everything Medicare
Insurance doesn’t cover as long as the
charge is approved by Medicare (other
plans may be available with lower
premiums)
*average premium based on preferred rates
Medicare/Medicare Supplement Cost
1.
2.
Your Medicare health or
prescription drug plan can change
how much it costs and what it
covers each year. Even if your
plan’s cost and coverage stay the
same, your health or finances may
have changed. Review your plan
each year to make sure it will still
meet your needs. If you’re satisfied
with your current coverage, you
don’t need to change plans.*
Cost is usually the only difference
between Medicare Supplement
policies with the same letter sold
by different insurance companies**
What Medicare Says…
*www.medicare.gov/publications/pubs/pdf/10050
**www.medicare.gov/publications/pubs/pdf/02110.pdf
1.
2.
3.
4.
Prior to age 65 you could not
purchase this package.
Medicare and the right
Medicare Supplement is the
most comprehensive health
care coverage available.
As long as you pay your
premiums, the company
cannot cancel your coverage.
Regarding our recent health
care overhaul, there are no
cuts to the traditional
Medicare benefit. Medicare
recipients actually received
additional benefits in 2011!!!
What this means for you…
As a taxpayer, once you turn age 65,
you are entitled to health insurance
benefits under Medicare, and the
choice to supplement your Medicare
benefits through private coverage.
Making the right choice is one of the
keys to a successful retirement.
Choosing a Medicare
Supplement that’s right for
you puts you in control of
your health care!!!
Medicare, Your Entitlement,
Your Choice