In dictionaries the word gap means a break, a separation, an incompleteness or deficiency. In Medicare it means the same thing, but it refers specifically to something that is missing from your health insurance coverage. Many seniors make a critical mistake when they buy into government literature that explains how Medicare pays for eighty percent of your healthcare. This is not true. What they really mean is Medicare pays for eighty percent of major medical expenses. As a result, millions of Americans are totally unprepared to deal with the true cost of their health and wellness in retirement. Medicare Costs Original Medicare Part A (hospital insurance) and Part B (medical insurance) creates a number of cost gaps. In fact, every deductible, copayment, and coinsurance is a cost gap, because it's a break in your coverage, and you must pay the gap out of your own pocket. One way to fill this gap is with Medigap, also known as Medicare supplement insurance. Medigap is insurance … [Read more...]
Physicians United Medicare Advantage Plan TERMINATED!
Physicians United Plan, a Medicare Advantage HMO, received their court order to shut down at the end of the month. The company will be liquidated on July 1st under the order signed by a Leon County judge. The ruling earlier this week affects affects approximately 39,000 members in Florida. Physicians United Plan was running a $13 million deficit, according to court records. The board of directors requested a $30 million infusion of capital in April to avoid being placed in state receivership. They never received this funding and dropped a popular Tampa Bay area medical practice, forcing patients to scramble to find new doctors, but it wasn't enough. The judge determined the company to be insolvent. The Centers for Medicare & Medicaid Services (CMS) will notify enrollees in this plan about their choices soon. In the past, enrollees of terminated plans have been given a special enrollment period to pick another Medicare Advantage plan. Enrollees may also have the … [Read more...]
What Medicare Out-of-Pocket Costs Mean to You
Out-of-pocket costs are those fees that you have to pay at the doctors office, hospital or pharmacy because they are not covered by your Medicare health insurance. Almost all healthcare plans have these expenses, but they vary according to what type of Medicare plan you choose. Your out-of-pocket costs are a financial risk. As with any other type of insurance, the more risk the insurance carrier assumes the higher the premium. Conversely, if you assume more of the risk, you will incur a higher percentage of the costs out of your own pocket. Let's explore the common out-of-pocket costs in Medicare. Out-of-Pocket Cost by Category Premiums are payments you make, usually monthly, in order to be part of a health care plan. If you are enrolled in Medicare Part B (doctor coverage), your premium is taken from your Social Security check. You paid into Part A (hospital coverage) through employment taxes while you worked, so you don't pay a monthly premium to get it. A copayment, or … [Read more...]