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...]
Is a Medicare MSA Plan Right For You?
MSA stands for Medical Savings Account. It's a type of health insurance plan that helps you set aside monies in a tax-free savings account to be used on your health care costs. If you're familiar with Health Savings Accounts outside of Medicare, it's a similar type of health plan. Some Medicare Advantage (Part C) plans offer the MSA feature. They have a lot of flexibility and allow you to choose your health care services and providers. Depending on your situation, it might be a good alternative. Let's examine what it is and who it can benefit. Two parts of an MSA A high-deductible health plan, which will cover your medical costs after you reach the deductible; A Medical Savings Account in which your MSA plan deposits money you use to pay for your medical expenses. How an MSA plan works After you enroll in an MSA plan you open a bank account in a bank designated by the plan. You handle the savings account yourself. Your plan deposits a certain amount of money given … [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...]