Medicare
Medicare is a federal and state health insurance program primarily for individuals who are sixty-five years of age or older. Full or partial cover-age is offered to those who are disabled before age sixty-five. There are two parts to the government’s insurance benefits.
• Medicare Part A is hospital insurance. Most people do not pay a monthly Part A premium because they or their spouse have forty or more quarters of Medicare-covered employment. This portion covers inpatient hospital costs in a benefit period; you may pay a deductible and coinsurance charges. Part A also covers skilled nursing home facility care up to 100 days after hospitalization in a benefit period with a coinsurance charge. Home care and hospice services are also available. If you exceed 100 days, you must begin paying the costs of the nursing home stay. In states as large and diverse as New York the cost can range widely. The insurance industry reported that the average cost per day in Chautauqua County (western New York) is $144, while it is $251 per day in Suffolk County to the east. With such a high price to pay, many people consider buying long-term care insurance to cover the possibility of longer, extended periods. If one cannot afford it, Medicaid begins to kick in to pay the bill once people meet the requirements to qualify. Medicaid is essentially welfare, and to qualify one must have few assets.
• Medicare Part B is medical insurance. This portion of the plan covers physician’s services, inpatient and outpatient medical and surgical services, physical and speech therapy, diagnostic tests, durable medical equipment, and such. Monthly premiums may be deducted from one’s Social Security benefit. In 2002, the premium is $54, adjusted annually. There are possible 20 percent co payments due on some Medicare-approved charges. Since some medical costs are only partially covered—for example, you would pay 20 percent of the cost of durable medical equipment—or, as in the case of prescriptions and vision and dental care, are not covered at all, you may need to keep a nest egg set aside for these expenses. On the other hand, you may find coverage for these things by buying insurance plans from a company in your area. To get your copy of a Medicare benefits description call (800) 633-4227.
