Medicare is a federal health insurance program that pays a large part of the medical expenses of most Americans over the age of 65 and some younger, disabled persons who have received federal disability benefits for at least 24 months. Individuals with end-stage renal disease or ALS (amyotrophic lateral sclerosis, or “Lou Gehrig’s Disease”) may qualify for Medicare without the 24-month requirement. Anyone over age 65 may apply for Medicare.
Most people get Medicare coverage in one of two ways: The enrollee chooses an Original Medicare Plan (which has Part A and Part B) + Part D (prescription drug coverage) + optional Medigap (Supplemental) insurance; or a Medicare Advantage Plan (Part C), which combines Parts A, B, and D. Part A is premium-free to most people. Part B requires a monthly premium. People with lower incomes pay lower premiums. If you are not yet on Social Security, you will be billed quarterly for Medicare premiums. Part C (Medicare Advantage plans) includes some benefits not available through Original Medicare. Part D insurance is optional, however, there is a penalty for beneficiaries who do not enroll when initially eligible and then enroll later.
Help is available for low-income enrollees who cannot afford to pay Medicare premiums, copayments, or deductibles. To find out more about Qualified Medicare Beneficiary (QMB), Specified Low-Income Medicare Beneficiary (SLMB), Qualifying Individuals 1 (QI1), and Extra Help programs, or to enroll. The resource limits for the Medicare Savings (QMB, SLMB, and QI1) and Extra Help programs can change. Call Affordable Medicine Options for Seniors (AMOS) (page 125) for current resource limits.
To apply for Medicare benefits, you should contact Social Security three months before you turn 65, whether or not you are retired. If you do not sign up at that time, you may be charged higher premiums when you do enroll. Contact Social Security for details about when and how to apply. If you are receiving Social Security or Railroad Retirement when you turn 65, you are automatically enrolled in Medicare, and your card will be mailed. The only way individuals may delay taking Part B without penalty is if they are enrolled in a plan that is at least as good as Medicare (creditable coverage).
If you continue to work after age 65 and are covered by your employer’s health insurance, Medicare will be the secondary payer for some hospital services under Part A. Contact Social Security promptly to enroll in Part B when you stop working or employment-related health insurance ends. Your premiums could be higher if you do not. You may be able to purchase a Medigap policy if your employment-related coverage is ending.
You can request pamphlets about Medicare benefits by telephone or online at www.medicare.gov. The Centers for Medicare & Medicaid Services (CMS), the federal agency that administers Medicare, sends a Medicare & You handbook to beneficiaries yearly with the latest information about Medicare benefits and where to get help.
For reliable information about obtaining desired Medicare benefits, contact Affordable Medicine Options for Seniors (AMOS) or the local office of Tennessee State Health Insurance Program (SHIP).
Medicare Part A helps pay the cost of inpatient hospital care, and in some cases, helps pay for home health care, hospice care, and skilled nursing care in a nursing facility. Per benefit period, the patient must pay the deductible–the cost of the first day in the hospital (set annually; $1,316 as of Jan. 1, 2017). A benefit period begins with admission and ends 60 days after discharge. A new deductible is charged only after that 60-day period. Some Medicare Supplement plans cover that cost.
Written material about patients’ rights under Medicare should be provided upon admission.
Soon after admission, the patient and family should be contacted by the discharge planner or social worker. If such contact is not made, ask for it. Plans for patient care after discharge should be made as early as possible. For scheduled procedures, basic planning can be done before entering the hospital.
The amount Medicare will pay for a hospital stay is based on a patient’s diagnosis and whether hospital care is medically necessary. Once a doctor has decided it is no longer medically necessary for a patient to remain hospitalized, the person will be discharged.
If the patient or family disagrees with the decision to discharge the patient, they can appeal before leaving a hospital or other skilled care facilities. To appeal, contact KEPRO, Tennessee’s Medicare quality improvement organization, for information and assistance in starting the appeal process within the time allowed. You may have to insist on your right to appeal.
Medicare Part B helps pay for medically necessary doctors’ care, out-patient hospital, and some other medical services. Enrollees pay a monthly premium and yearly deductible for Part B. Ask Medicare for more information (page 126). Part B will pay at least 80 percent of the Medicare-approved amount for any eligible service. Many preventive procedures do not require the 20-percent copayment. Doctors and durable medical equipment suppliers who accept as their full fee what Medicare allows are said to “accept Medicare assignment.”
Medicare Part D helps pay for medically necessary prescription drugs for beneficiaries. Medicare Part D is optional; however, there is a penalty for beneficiaries who do not enroll when initially eligible and then later enroll. The annual open enrollment period is Oct. 15 to Dec. 7 each year. Part D enrollees must participate in Parts A and B and may pay a Part D monthly premium and yearly deductible. There are limits to what Part D covers, which are outlined in the annual Medicare & You handbook. Enrollees eligible for both Medicare and Medicaid (“dual eligibles”) currently receive prescription drug coverage through Medicare, not Medicaid.
Help is available for low-income Medicare beneficiaries who cannot afford to pay Medicare premiums, copayments, or deductibles. To find out more about Qualified Medicare Beneficiary (QMB), Specified Low-Income Medicare Beneficiary (SLMB), Qualifying Individual (QI), or Extra Help programs, or to apply, call AMOS.
Medigap policies are sold by private health insurance companies to fill “gaps” in Original Medicare Part A and Part B coverage. Medigap policies help pay your share (coinsurance, copayments, and deductibles) of the costs of Medicare-covered services; some policies cover certain costs not covered by Original Medicare.
In Tennessee, you may choose from up to 10 different standardized types of Medigap policies, which must follow federal and state laws that protect beneficiaries. A Medigap policy must be clearly identified as “Medicare Supplement Insurance.” You need only one Medigap insurance policy. Before purchasing, be sure the policy provides the coverage you want and can afford. For more information, contact Affordable Medicine Options for Seniors (AMOS) or the State Health Insurance Program (SHIP).
State and federal laws guarantee your right to purchase the Medicare supplement insurance policy of your choice during an initial open enrollment period that begins when you turn 65 and are enrolled in Parts A and B. You cannot be refused or charged more based on health, medical history, or claims experience.
Guarantees of access, called Guaranteed Issue Rights, to Medigap policies are available outside the initial open enrollment period in these situations:
In the above situations, fast action is required: Enrollees must choose a Medigap policy within 63 days of losing previous coverage. For more information or assistance, contact Affordable Medicine Options for Seniors (AMOS) or the State Health Insurance Assistance Program.
Medicare Advantage plans (Medicare Part C) are approved by Medicare but administered by private companies. When you join a Medicare Advantage plan, you are still in Medicare, but you cannot simultaneously hold a Medicare Advantage plan and Original Medicare. When you have an Advantage plan, you do not need a Medigap policy; it is illegal for anyone to sell you one.
Medicare Advantage plans provide all of your Part A and Part B coverage and must cover medically necessary services. They may offer extra benefits (such as dental care, routine eye exams, and preventive care), and many include Part D drug coverage. However, you must still pay your Medicare Part B premiums in addition to any premiums charged by the Medicare Advantage Plan. The kinds of Medicare Advantage plans available in our area are:
Medicare Advantage plans have networks, which means you may have to see doctors who belong to the plan or go to certain hospitals to get covered services. In many cases, your costs for services can be lower than the Original Medicare Plan.
Although Medicare Advantage plans have many advantages, consumers should understand that providers are encouraged to be as cost-effective as possible. If you are denied services, an appeal is worth pursuing. Each plan has a member services phone number for help with the appeal process.
Medicare Advantage plans available in Tennessee are listed in the Medicare & You handbook. You also can call Medicare or go online to www.medicare.gov.
To decide whether to enroll in a Medicare Advantage plan (HMO, PPO, or Special Needs) or remain in Original Medicare, evaluate the pros and cons.
If you join a Medicare Advantage plan and drop your Medigap policy, you may have Medigap protections that allow a return to your old policy (possibly at a higher cost) or to buy a new one if you choose to leave your Medicare Advantage plan or other Medicare plan within the first year.
You can compare the Medicare Advantage plan choices available in Knox County at www.medicare.gov.