Medicare

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Medicare is health insurance for people 65 or older, people under 65 with certain disabilities, and people of any age with End-Stage Renal Disease (ESRD) (permanent kidney failure requiring dialysis or a kidney transplant).  Most people expect that once they become eligible for Medicare that the government will now be responsible for the majority of their healthcare costs and their out of pocket costs will decline.  This may or may not be true depending on what your income and healthcare needs are.  Medicare has various parts and while it is true that Part A which covers 80% of inpatient care in hospitals is usually provided free of cost, Part B which covers 80% of services from doctors will cost you anywhere from $104.90 to $335.70 per month, depending on your income in 2013.  You are now also required to have Part D prescription drug coverage which will cost you another $30-$50 per month on average.

Medicare Supplement Insurance or Medigap is supplemental insurance to cover the "gaps" that Original Medicare (parts A & B) doesn't cover, such as the other 20% of hospitals and doctors, but this can also include copayments, coinsurance and deductibles. These supplemental insurance policies are standardized by the federal government and are identified by letters A through N.  Each standardized Medigap policy must offer the same basic benefits, no matter which insurance comapny sells it, but costs can vary greatly between insurance companies.  A typical Medigap policy can run $100-$200 per month.

Without a Medigap policy to help pay your incurred bills that Medicare may not cover, your expenses could really add up. While you can budget for your insurance premium, paying for emergencies or other unexpected medical conditions could be far more costly. A Medicare supplement insurance policy keeps your costs under control and may bring you additional benefits.

The open enrollment period lasts for six months and begins on the first day of the month in which you are both age 65 or older and enrolled in Medicare Part B (some states may have additional open enrollment rights under state law).

Medigap policies also require that you are able to answer health questions to qualify unless you enroll in your open enrollment period which lasts for six months and beings on the first day of the month in which you are both age 65 or older and enrolled in Medicare Part B.  During this period, an insurance company cannot refuse to sell you any Medigap insurance policy it offers, make you wait for coverage to start (except in limited circumstances) or charge you more for a Medigap policy because of any past or present health conditions.

New Dawn Financial can help you navigage your Medicare choices and ensure that you have the correct healthcare coverage so that you are not left with unmanable expenses at the time in your life that you can least afford them.