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...]
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...]
Medicare Code: Deciphering The Terminology
Flooded by a sea of acronyms, technical terms, facts and figures when you first explore Medicare, you might feel like putting up your hands and giving up. Don't, because it isn't as complicated as it first seems to be. In fact, once you get a handle on the basic terminology you will be well on your way. It all starts with the four parts of Medicare. Medicare Parts Defined There are four different parts of Medicare, and each one corresponds to a letter of the alphabet. Parts A and B constitute what is known as Original or Traditional Medicare. Part A is your Original Medicare hospital insurance. Part B covers your doctor and outpatient services through Original Medicare. Part C, also called Medicare Advantage, are health plans offered by private insurance companies. These plans are required to give you all the benefits of Original Medicare (Part A and B), and sometimes offer extras such as dental, vision, hearing, and health services. Part D is prescription drug coverage, … [Read more...]