There are many private insurance companies that offer medical insurance to old-aged people in the United States. One of the most famous out of them is the Medicare insurance plan.
These are run by the federal government to provide medical benefits (insurance) to people who are 65 years of age or above.
In certain cases, people who are under 65 are also considered for this program with specific health conditions like End-Stage Renal Disease (ESRD). Subscribing to this program offers you Social Security Disability Insurance (SSDI) as well for a few years.
However, the amount of taxes that are deducted from your income for Social Security and Medicare are responsible for the funding for this program other than the premium and federal budget collected annually for it.
Many plans come under the umbrella of the Medicare program that requires eligibility for enrollment. Once you become eligible for it, then the wide variety of Medicare plans becomes open for subscription.
To purchase any of the plans, you need to buy the Original Medicare first directly from the federal government against a specific fee-for-service.
The Original Medicare Plan includes:
- Part A – hospital cost / inpatient
- Part B – medical cost / outpatient
Apart from this, many people require coverage for prescription drugs that come under the bracket of Part D, then you need to purchase a Medicare private drug plan (PDP) as the Original Medicare does not pay for such expenses.
If you purchase a Medicare Advantage plan, then even your Original Medicare plan will be valid and because of that, you have to pay the monthly Part B premium and Part A premium (if you have).
It is mandatory for all Medicare Advantage Plans to give all services for Part A and Part B that are covered by the Original Medicare plan.
Whereas, if your employer has given you insurance, then you automatically get registered when you meet the eligibility criteria. Although you have the right to select whether you want to remain with that plan or switch to any other plan for that, you need to discuss it with your employer or union before.
It is recommended to carefully check all the Medicare plans to know which one offers you the best coverage at an affordable rate for your medical needs. Other than the plan, you need to look over for an insurance company as this can create a big impact on the out-of-pocket cost.
The subscribers of Original Medicare have the advantage to go to almost all doctors or healthcare providers in the country. Moreover, to add more benefits for your healthcare needs like hearing or vision or dental care, you can purchase any Medicare Advantage plan.
Another insurance program that is offered by the federal government is Medicaid. This plan also provides medical insurance but in partnership with states. People often get confused with Medicare and Medicaid but there is a big difference in both the plans. This program is specifically designed for people with low income.
The eligibility for this program is based on certain factors like age, disabilities or pregnancy, etc.
There are three types of cards issued to the subscribers of Original Medicare insurance policies that are red, blue, and green. It doesn’t matter which plan you purchase either Medicare Advantage plan or Medicare Supplement Plan; you will still receive the Original Medicare card.
Although, you need to show your Medicare Advantage or Medicare Supplement card when you opt for the services at any healthcare center or doctor’s office.