Medicare is the health insurance policy for individuals aged 65 or older and younger people who earn disability coverage from Social Security in our country. The policy deals with health insurance costs, but it does not cover all medical expenses or long-term care costs. Initial Medicare includes Part A (Hospital Insurance) of Medicare and Part B (Medical Insurance). You should sign up for a different Part D package if you want drug coverage. “Medicare Advantage is an alternative to Original Medicare, “all in one. Part A, Part B, and typically Part D are included in these “bundled” plans. Plans for Part C could have lower out-of-pocket expenditures than Original Medicare. There are many misleading things out there when it comes to Medicare. You want to correct your Medicare myths and facts if you are nearing your 65th birthday.
Here is the truth about the Medicare myths and facts, so you can secure your retirement finances and prepare for future healthcare spending.
7 Medicare Myths and Facts
1. Medicare Covers All Medical Costs.
Uh, not really.
If you are new to Medicare health facilities, you might be shocked to hear that there is no free service for Original Medicare (Part A and B). Initial Medicare covers only a fraction of the medical expenses. You are liable for premiums, deductibles, benefits, and co-payments. Many people think that there’s not enough coverage provided by Original Medicare alone.
2. Part B of Medicare Is Free
Part B of Medicare is not secure. Like any health insurance plan, you can pay premiums, deductibles, copays, and coinsurance out of pocket.
No part of Medicare is, in practice, entirely free. Although you will qualify for no premium with Part A, you will also have a deductible, copay, and coinsurance.
3. Costs and Coverage for Medicare Will Not Change.
In reality, Medicare assesses the cost of treatment every year and makes changes. The cost of insurance and deductibles also goes up. However, they go down occasionally.
4. Medicare Is the Same as Medicaid.
This is not correct. There are federal services for both Medicare and Medicaid. Both services help provide health insurance for individuals. However, that is where it ends with similarities.
Usually, Medicare is for persons who are elderly or disabled. Medicaid is for those with limited means and jobs.
5. When You Turn 65, Medicare Coverage Is Automatic.
This is another myth where yes and no are the facts. If you are not receiving Social Security or Railroad Retirement Board (RRB) payments, enrollment in Sections A and B is automatic. Nothing that you need to do. Three months before your 65th birthday, you will get a ‘Welcome to Medicare package. However, you have to voluntarily participate at that time if you do not earn these benefits at least four months before you are about to turn 65. Enrollment is optional in Part D, Medigap, and Medicare Advantage programs.
6. Poor Health Can Help You to Qualify for Medicare.
Enrollment is optional in Part D, Medigap, and Medicare Advantage programs.
Medicare coverage, not your well-being, is a feature of Social Security benefits. Because of a pre-existing illness, Medicare cannot refuse coverage. It cannot increase the prices either because of bad health. For Medicare Advantage plans, too, it is the same. Medigap coverage, however, is getting tricky.
7. When It Is Time to Enrol, Medicare Will Inform Me.
When it is time to enrol, Medicare does not tell you. You must sign up independently because you are still collecting Social Security at age 65. When you sign up, it depends on whether you retire at age 65 or work past 65 and receive health insurance benefits from your employer.
Conclusively, Ahead of retirement, there is a lot to know about Medicare, so do not make the error of not reading up on it. The more information you dig up, the less likely you will buy into misconceptions that could end up costing you time that is important for you!