Medicare Benefits and Costs

Medicare is an insurance program that is offered to some Americans and funded and, in most cases, administered, by the Federal Government. There are over forty million Americans that currently use this social insurance program and this figure is expected to nearly double over the next twenty years.

While funded by the federal government, part of the money that funds this program is raised by income taxes. The employer and the employee both pay half of the amount and this comes to around 3% of a persons income, with the employee paying 1.5% and the employer matching this amount. People that are self employed must pay the entire 3%, but they can claim half of this on their taxes.

This social insurance program is divided into several parts. Part A benefits include things like stays at hospitals and nursing homes. Part B benefits cover services like x-rays, ambulance trips, and dialysis. Included in Part B benefits is the coverage of durable medical equipment, which includes things like adjustable beds and wheelchairs.

Those that are on Medicare are also required to pay deductibles and monthly or yearly premiums to receive coverage. If a person, or their spouse, has paid Medicare taxes for at least 40 quarters, then they will typically not have to pay any monthly or annual premiums to receive Part A benefits. Otherwise, they will have to pay between $200 and $425 depending on how many taxable quarters they, or their souse, has worked. However, even if they do not have to make any monthly payments, the insured is still required to pay a deductible for most services. For example for a hospital stay of less than sixty days, there is a deductible of about $1000. After that, there is a deductible of about $250 per day.

While many people end up not having to pay any premium to receive Part A benefits, there is a premium to receive Part B benefits. Usually this is around $100 per month, but this figure can vary based on a persons income. The insured must also pay a deductible to receive these benefits. For Durable medical equipment, the insured is usually responsible for around 20% of the total cost of the piece of equipment.

The original Medicare Bill, which became law during the sixties, outlined only Part A and Part B benefits, but 1997 a new part was added. This is referred to as Part C benefits or Medicare Advantage Plans. Part C allows those that are eligible to receive Medicare benefits, to use private insurance companies instead of the federally run program. These programs are administered by private insurance companies, but are still required to offer the same benefits offered by traditional Medicare. The private companies are given a good deal of leeway in deciding how to offer these benefits, and as a result there are differences in the cost of these plans. Since these plans can vary, make sure that you fully read and understand the plan, in addition to comparing it to other plans and traditional Medicare.

A few years ago, in 2006, there was another change to Medicare, which added coverage for Prescription medicine. This is usually referred to as Part D of Medicare and, while it is rather inclusive, it does not cover all types of medicine. Medicines that are not covered include most controlled substances, although over the next few years, some controlled substances are set to be covered.

Sam Tarwell is knowledgeable about Medicare and many other health related topics. Recently, due to changes in legislation, several changes have been made that affects those that are insured by this program and how doctors are reimbursed. This program is called the Medicare Patient and Providers Act and also makes changes Medicare Advantage Plans. To learn more about these changes, how durable medical equipment covered, or many other health related issues, visit Lift Chair Guide.

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