Medicare
has two parts: hospital Insurance, known as Part A, and supplementary
medical Insurance, known as Part B, which provides payments
for doctors and related services and supplies ordered by the
doctor.
If you are eligible for Medicare, Part A is free, but you must
pay a premium for Part B.
Medicare
will pay for many of your health care expenses, but not all
of them. In particular, Medicare does not cover most nursing
home care, long-term care services in the home, or prescription
drugs. There are also special rules on when Medicare pays
your bills that apply if you have employer group health insurance
coverage through your own job or the employment of a spouse.
Medicare
usually operates on a fee-for-service basis. HMOs and similar
forms of prepaid health care plans are now available to Medicare
enrollees in some locations (see Medicare
Compare to find and compare the plans in your area).
The best
sources of information on the Medicare program are the handbook
Medicare
& You 2001 (size: 869 KB -- you will need Acrobat
Reader (available for free)
to view or print this in .pdf format), and the Medicare
website. The handbook is also available for free in print
by writing to: Health Care Financing Administration, Publications,
N1-26-27; 7500 Security Blvd., Baltimore, MD 21244-1850. You
may also contact your
local Social Security office for information and materials
(this link also provides contact information if you are outside
the U.S.).
Some
people who are covered by Medicare buy private Insurance,
called "Medigap" policies, to pay the medical bills
that Medicare doesn't cover. Some Medigap policies cover Medicare's
deductibles; most pay the coInsurance amount. Some also pay
for health services not covered by Medicare. There are 10
standard plans from which you can choose (some States may
have fewer than 10.) If you buy a Medigap policy, make sure
you do not purchase more than one. You need to shop carefully
before deciding on the best policy to fit your needs. To help
you make the right choice, review these guides (you will
need Acrobat
Reader (available for free)
to view or print these in .pdf format)
To order
free, printed copies of these publications, write to:
Health Care Financing Administration
Publications,
N1-26-27
7500 Security Blvd.
Baltimore, MD 21244-1850.
To find
the Insurance companies in your state that sell Medigap, and
to help you compare their plans, use Medigap
Compare, Medicare's Medigap plan comparison database.
Disability
Insurance
Disability
insurance replaces income you lose if you have a long-term
illness or injury and cannot work. This is an important type
of coverage for working-age people to consider. Disability
insurance does not cover the cost of rehabilitation if you
are injured. Check your major medical insurance to see if
it is covered there.
Some employers
offer group disability insurance and this may be one of the
benefits where you work. Or you might be eligible for some
government-sponsored programs that provide disability benefits.
Many different kinds of individual policies are also available.
To help
you decide if you need this coverage, review the online Guide
to Disability Income Insurance, from the Health Insurance
Association of America. This publication explains disability
Insurance and sources of disability income. It will also help
you compare your choices of policies. For a free printed copy,
complete this online
order form.
Hospital
Indemnity Insurance
This insurance
offers limited coverage. It pays a fixed amount for each day,
up to a maximum number of days. You may use it for medical
or other expenses. Usually, the amount you receive will be
less than the cost of a hospital stay.
Some hospital
indemnity policies will pay the specified daily amount even
if you have other health insurance. Others may coordinate
benefits, so that the money you receive does not equal more
than 100 percent of the hospital bill.
Long-Term
Care Insurance
Long-term
care insurance is designed to cover the costs of nursing home
care, which can be several thousand dollars each month. Long-term
care is usually not covered by health insurance except in
a very limited way. Medicare covers very few long-term care
expenses. There are many plans and they vary in costs and
services covered, each with its own limits.
More detailed
information is given in the online Guide
to Long-Term Healthcare from the Health Insurance
Association of America. For a free printed copy, complete
this online
order form.
 
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