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Selecting a Medicare plan can make you feel like you would feel in a bowl of alphabet soup…parts, plan, letters. How do you sort it all out?
Start with the chart below.
Health care costs will probably be one of your biggest costs in retirement. Selecting the right Medicare health plan is essential to your health and your wallet.
If it’s been a while since you looked at your Medicare coverage, you may find some new terms and plans. If you are new to Medicare, understanding the basic choices will help you find the right solution.
Keep these basics in mind as you explore Medicare choices:
- Part A and Part B are referred to as Original Medicare
- Part C combines Original Medicare and additional benefits
(maybe include Part D)
- Part D is Prescription Drug coverage which can be stand-alone or
included in Part C
Through our consultative approach, Longevity Alliance’s licensed health insurance advisors explains the basics of Medicare and helps you find the Medicare solution that best meets your needs. At Longevity Alliance, we understand it’s not just about health insurance; it’s about the right health coverage at the right price.
| Benefit
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Description
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Your Potential Costs
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| Part A Origianl Medicare
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Government plan that helps cover the cost of inpatient hospital stays and skilled nursing facility care, hospice care and home health care.
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Premium is free for most people eligible for Medicare. There is a deductible for each hospital stay ($1,068 in 2009) and copayment for other benefits.
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| Part B Origianl Medicare
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Government plan that helps cover medical expenses such as doctor’s services, inpatient and outpatient medical and surgical services, physical and speech therapy.
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Monthly premium of $96.40 for 2009 (more if your income is over $85,000), an annual deductible of $135. Medicare generally pays up to 80% of the care cost.
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| Part C Medicare Advantage
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Medicare Advantage plans include Part A and Part B plus additional benefits. Often includes Part D coverage. Medicare pays a fixed fee to the plan for your care. Provided by private insurance companies.
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You must have Part A and Part B to join a Medicare Advantage Plan. Plans are provided by private insurance companies. Some zero premium plans are available.
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| Part D
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Helps cover prescription drug costs. Provided by private insurance companies.
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Monthly premiums for insurance provided by private insurance companies. The national average premium per month in 2009 is $28.
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| Medigap Insurance Policy Medicare Supplemental Insurance
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Helps cover the costs that Medicare does not cover including deductibles, co-pays and generally the 20% not paid by Medicare. Plan benefits are standardized – the same from all insurers. Provided by private insurance companies.
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Monthly premiums depending upon which plan you purchase. Covers most out-of-pocket expenses. Prices vary widely by company and location, so you will benefit by comparing plans.
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LAI Tip: If choice is important: Part A + Part B + Part D + Medigap.
If keeping your premium low is most important: Part C (which includes Part A and Part B) + Part D (it may or may not be included in your Part C plan)
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