News
- November 4, 2011
Medicare Prescription Savings Pass $1B Mark (AP) - November 4, 2011
Report Links Deficit Cuts to Medicare, Social Security (The Hill) - November 2, 2011
Medicare to Slash Doctors' Pay unless Congress Acts (USA Today)
May 19, 2011
Medicare Insurance
Medicare Insurance is a commonly-used term that confuses many. The first issue is that it is more accurate to speak of "Medicare insurances" rather than "Medicare insurance" since there are a variety of government and private insurance services associated with the program. Medicare Part A is government-supplied insurance covering hospitalization procedures such as surgery or emergency room visits. Medicare Part B is government-supplied medical insurance covering health care such as doctor visits. Medicare Part C, also known as Medicare Advantage insurance, delivers Medicare Part A and B insurance benefits through a private insurance company's Medicare health insurance plan. Medicare Part D provides drug insurance coverage through a Medicare prescription drug plan. Like Medicare Advantage, Medicare Part D insurance provides its insurance benefits through a private insurance company. These private insurance companies are one of the ways that the program connects the government to healthcare providers serving enrollees. We provide a no cost tool to compare drug plans among prescription drug plan and Medicare Advantage insurance options and allow you to save this Medicare plan comparison.
Medigap plans are private insurance plans that are not subsidized by the government and offer coverage for out-of-pocket costs not covered by Part A and Part B. By the phrase "private insurance plan" we mean that the insurance plan is offered by a private insurance company and not the government Medicare program. There are ten standardized Medigap insurance plans available in most states (except Massachusetts, Minnesota, and Wisconsin). Compare Medigap insurance plans using our tool and see the differences in monthly premiums among insurance companies for a given Medigap insurance plan in your state.
What is Medicare?
Medicare was created in 1965 by the Social Security Act of 1965 and provides health insurance benefits to senior citizens in the United States. It is administered by the Centers for Medicare and Medicaid Services (CMS). While senior citizens are the largest portion of enrollees, other groups (e.g. the disabled) have access to the program as well. See our Medicare eligibility article for more information on who qualifies to enroll in Medicare and receive Medicare benefits.
Click here for the full video transcript.
Medicare Benefits
As mentioned earlier, Medicare benefits range from hospitalization to medical services and prescription drug coverage. These insurance benefits are categorized according to the four parts of the government insurance program: Part A, Part B, Part C, and Part D. Many of the programs (e.g. Part B) have monthly premiums. Part A and Part B are sometimes referred to as "Original Medicare." Medicare also offers a Low Income Subsidy, also known as Extra Help, to help qualified Medicare enrollees who meet the income and asset qualifications set by the government. This program reduces the private insurance costs associated with Part C and Part D programs. Seniors enrolled in programs such as Medicaid or MSPs (QMB, SLMB, QI) automatically qualify for the Extra Help program.
Medigap insurance plans do not provide government-subsidized benefits but do offer insurance coverage for various deductibles and co-payments not covered by Part A or Part B. See our Medigap benefits chart of the ten standardized Medigap insurance plans to review what is covered by each plan.
People with existing health insurance coverage from the Department of Defense may have their insurance benefits modified or discontinued when they become eligible for Medicare. The insurance administrator can provide more information on this subject. Veterans with VA health insurance benefits should contact their insurance administration office to discuss whether it is prudent to pursue Medicare medical insurance.
"Is Medicare Insurance A Type of Insurance from the Government or from Private Insurance Companies?"
Insurance in general can be confusing and insurance related to Medicare can be even more puzzling given the breadth of the insurance benefits and the number of insurance programs to understand. As stated earlier, the Medicare program comprises a variety of insurance benefits and is not a singular form of insurance. Medicare Parts A and B are insurance benefits provided by the government while Parts C and D are insurance benefits provided through private insurance companies that have been contracted by Medicare for participation in Parts C and D. Part C enrollees receive the normal Part A and Part B government insurance benefits from a private insurance company who may add additional insurance benefits such as Medicare Prescription Drug Coverage or routine vision benefits.