Medicare Health Insurance Need Not Be Expensive For Senior Citizens

In 1965 the original Medicare program was passed. Medicare had two parts then. Stays in a hospital for more than 72 hours were covered by Part A. Other medical insurance coverage costs were covered in Part B. Further down the road Part C and Part D were added to cover other health costs.

The coverage of Part A encompasses any hospital visit that was at least 3 days from admission to release. Also it covers stays in assisted living facilities if the reason for the stay is related to your covered hospital stay. Additionally, it requires that the nursing supervisor and nurse are both skilled personnel. Part A is paid from your standard tax deductions during your working career.

Part B of Medicare provides medical coverage that is usually optional. Part B pays for some services and providers not covered under Part A. X-rays, lab tests, specific outpatient procedures, flu vaccines, and doctor’s visits are some of the things covered under Part B.

Unlike Part A, Part B requires a monthly payment. At age 65 an individual is notified of their eligibility for Medicare, it is at this time they can decide whether or not to enroll in and pay for Part B. In 2006 the monthly premium for Part B was set at $88.50.

Beginning in 1997, Part C Medicare gave members the ability to get medical care from private insurance plans. These private plans completely replaced Part A and Part B coverage. In 2003, private plans were renamed to Medicare Advantage (MA) Medicare Insurance Plans.

On January 1st, 2006 “Part D” of Medicare insurance was added. Individuals who were already eligible for Parts A and B were automatically eligible to participation in Part D, which is a prescription drug plan. With Part D Medicare was able to offer members the option of many private insurance prescription drug programs.

Medicare’s Part D also lowered the prices on drug prescriptions for Medicare members. Similar to Part B, Part D requires a monthly premium. However, each of these private drug prescription programs have differing restrictions and conditions which made it difficult for many members to choose a plan.

Some government agencies predict that the Medicare insurance program may run out of money around 2018. It seems that workers are retiring and using Medicare insurance faster than current workers are paying into the Medicare insurance bank account.

In 2005, the Medicare insurance program provided coverage to an estimated 42.5 million persons. The “Baby Boom” generation, once fully retired and enrolled in Medicare insurance, is expected to swell the ranks of the Medicare insurance members to approximately 77 million persons around the year 2031.