Medicare Part A and Part B are plans that almost all retirees can and should
participate in. Your ability to purchase and/or qualify for most additional or
medicare supplemental insurance is dependent on your enrollment in Medicare part A
and part B.
Medicare Part A -- Medicare Eligibility Part A is Automatic at age 65
At age 65 you automatically qualify for Medicare Part A if you or your spouse
paid Medicare taxes while you were working.
Medicare Part A is insurance that covers hospitalization. There is an $812
deductible for each annual benefit period -- but no monthly premiums.
Medicare Part B
Medicare Part B covers all or a percentage of the costs of: doctors' services
(some preventative screenings but not routine physical exams), outpatient
hospital care, some mental-health services, laboratory fees and some other
medical services like physical and occupational therapy and some home health
care.
Medicare Part B has a monthly premium of under $100. And, you must pay a
co-payment for most services. Medicare Part B will cover 80 percent of the
Medicare approved amount for your medical services -- so you will pay at least 20
percent of the charge of the service as well as anything charged above the
Medicare approved amount.
What Medicare Part A and Part B Don't Cover
Medicare Parts A and B do not cover drugs, dental care, routine physical exams,
hearing aids, and more.
Unlike private insurance, there is no limit on your out-of-pocket health care
spending. Some studies indicate that Medicare only covers about 45 -- 50 percent
of your total medical costs.
To learn more about Medicare supplements, please read: Medigap Insurance and
Medicare Advantage.
