You earn it while working at least 40 quarters (10 years) in your productive life. If you did not work 40 quarters you can buy into the Part A and the price will be according to how much you worked. Part B is not free and the cost for 2009 starts at $96.40 (people with higher income contribute more).
3. Does Medicare pay all my cost?
No. Neither Part A nor Part B pays 100% of your expenses. Also neither one of those pay for your outpatient prescription medication. For prescription coverage Congress established Part D in 2006.
4. How much, besides my premium, will I have to pay then?
That's very difficult to answer. Limitations for your hospital stay are substantial and the coverage for doctor's visit is generally paid at 80% of the cost. So you can be liable for thousands of dollars to pay even though you have your Medicare.
5. What can I do to lower or eliminate my potential liability?
Most people buy into a Medicare supplemental insurance (also known as Medigap). There are ten (10) different Medicare supplemental plans you can choose from to either reduce or eliminate your portion of medical cost liability. You have to choose carefully to have the right plan.
6. Is this the only way how I can protect myself?
No. In the 90's Federal Government established another Medicare program know as Medicare Advantage or Part C plan. That plan can help you manage your cost and save you also substantial amount of money as some of these plans are for no additional premium (to what you have to pay for part B) or very little extra premium. The Medicare Advantage plan can help you save money, but it is design different than Medicare supplemental plan and very different rules apply even with the enrollment to either one of those plans.
7. How is my prescription medication covered?
That's another confusing issue. Lots of people still believe that Medicare supplemental plan covers prescription drugs. That was true to some extend before 2006. Today, you have to have a special, government organized, prescription drug plan known as Part D, or PDP. If you opt for the supplemental insurance you need this PDP plan to be covered for prescription drugs. However, if you choose Medicare Advantage (Part C) most of the time this plan include prescription coverage.
8. Do I have to enroll in any of these plans?
Generally, you do not have to enroll in any plan. However, if you decide later in your life you need some of these plans you may be penalized for late enrollment to those government plans or you may be a subject to underwriting (and disqualification) to those Medicare supplemental plans.
9. This sound all very complicated. How do I get through this maze?
The best is to talk to an experienced and licensed agent such as any one of our association members. They can help you to understand all the necessary rules, find the best coverage tailored just for you. Without this help you may not have the right coverage or pay something you really do not need. We can do your personal analysis to find the best combination of government and private services absolutely free of charge with no obligation to you. We are associated with all major insurance carriers and we will be able to recommend the best one for you.
