Medicare 101

Medicare was established in 1965 and is a Federal health insurance program for Americas age 65 or older. It has also been extended for people with certain disabilities including renal failure.

There are two ways to access your Medicare benefits

1. Original Medicare + Supplements
2. Medicare Advantage

Medicare Parts

• Part A - Hospital Coverage
• Part B - Out-Patient / Doctor Coverage
• Part C - Medicare Advantage Plans
• Part D - Rx Drug Plan
• Medicare Supplement (Medigap Plans)

The Medicare Advantage Plan Advantage?

Medicare Advantage (Part C) is a private insurance company policy that lets you access your Medicare Part A & B benefits via a network of healthcare providers (either HMO or PPO). These private insurance policies also often include additional benefits such prescription drugs (Part D benefits), supplementary coverage (Medicare Supplement benefits) and other services. Each Medicare Advantage plan varies and may have a limited service area. 

We don't focus on the Medicare Advantage offerings. A Medicare Advantage plan can be a better short-term solution than Original Medicare combined with a Medicare Supplement / Part D Rx Drug plan but these plans are annual solutions only and can change or terminate at year's end. Our focus is on offering supplements to Original Medicare instead of Medicare Advantage plans is because it is a long-term solution.

The Medicare Original Plan

Medicare (Parts A&B) + Medicare Supplement + Medicare Part D Rx Drug Plan

This is a four-part solution for health insurance for a Medicare eligible person. First you enroll in Original Medicare (Part A hospital & Part B out-patient / doctor). When you become Medicare eligible at age 65, Medicare Part A (hospital) coverage is automatic and has no added cost. Medicare Part B (out-patient / doctor) enrollment is optional and has a monthly cost ($96.40 to $115.40 per month as of 1/1/2011). An optional Medicare Supplement can be added to fill some of the gaps in the Original Medicare program (Parts A&B). A Medicare Rx Drug plan (Part D) can be added to provide medically necessary prescription drugs. 

Ready to request a quote on a Medicare Supplement and Medicare Rx Drug Plan (Part D)? - Medicare Supplement Inquiry

Important Medicare Supplement rules: You have a guaranteed right to buy a Medicare Supplement when you turn age 65 and in some other situations. Be sure to buy a supplement, if desired, during your guaranteed issue period. Outside of the guaranteed issue period, you can be declined by the health insurance company. You can only buy a Medicare Supplement if you have enrolled in both Medicare Part A (hospital) and Part B (out-patient / doctor).

Important Medicare Rx Drug Part D rules: You can enroll in any Medicare Rx Drug plan when you turn age 65 during (initial enrollment period). If you don't buy a Medicare Rx Drug plan during you initial enrollment period, you can buy a plan during an upcoming annual enrollment period but may be subject to a premium penalty. You can also change to a different plan during any annual enrollment period. For people that have had equivalent prescription drug coverage that ends, you may also be eligible for a special enrollment without penalty but the time period to enroll is limited.

Other Resources

Health Insurance Inquiry
Official Medicare Website