Frequently Asked Questions About Medicare Insurance
Posted on: 26 May 2021
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As of 2019, there were 61.2 million beneficiaries of the Medicare insurance program. This scheme aim is to provide health insurance to the elderly and disabled persons. Here are answers to some frequently asked questions about Medicare insurance.
What Is Medicare?
Medicare is a federal program aimed at people who are 65 years and above. The program is also meant for younger people suffering from disabilities, and for people suffering from permanent kidney failure who require a transplant or dialysis.
Medicare covers the costs for emergencies, preventative care, and long-term health care. This initiative receives funding from the federal government. The main types of Medicare insurance coverage are Medicare, which comes with the option of prescription drug insurance, and Medicare Supplement. The other Medicare insurance scheme is Medicare Advantage.
Who Is Entitled to Medicare?
To qualify for Medicare insurance, you should be a U.S. citizen or a legal resident aged 65 years and above. You also qualify for Medicare if you're 65 years and above and receive retirement benefits from the Railroad Retirement Board, or if you're 65 years and above and have worked in a government job covering Medicare.
A person who is under 65 years is also entitled if they have a qualifying disability like an end-stage renal disease. Additionally, if you're under 65 years and have been receiving disability benefits for two years, you qualify for Medicare. Persons under 65 who have Lou Gehrig's Disease or have undergone a kidney transplant or dialysis are also entitled to this program.
How Is Medicare Funded?
Medicare is funded by a combination of general revenues provided by Congress and payroll taxes. It's also funded by the premiums people pay to enroll in Medicare Insurance.
Medicare Part A is mainly funded by payroll taxes.
Medicare Part B is funded by general revenues and the premiums paid by Medicaid beneficiaries.
Medicare Part C is supported by beneficiary premiums and general revenues.
Lastly, Medicare Part D is funded by state payments, beneficiary premiums, and general revenues.
When Should You Enroll for Medicare?
You have a 7-month window to enroll in Medicare. The clock starts ticking, beginning the three months before you turn 65 to the three months after you turn 65 years. If you fail to enroll during this period, you might have to wait until the general enrollment period that starts in January. The only exception to this rule is if you have misplaced your employer group insurance coverage.
Some penalties are charged for enrolling late. The two penalties are the Part B late enrollment penalty and the Part D late enrollment penalty. The Part B late enrollment penalty will increase your monthly premium by 10% for every year you delay the enrollment. The Part D enrollment penalty will increase your monthly premium by 1% for each month you delay your enrollment.
For more information about medicare, or medigap, contact your local insurance agent.