Medicare Part A

Medicare Part A helps cover your inpatient care in hospitals (critical access hospitals and inpatient rehabilitation facilities), skilled nursing facilities after a hospital stay, and Religious Nonmedical Health Care Institutions. Part A also helps cover hospice services and home health care services. Medicare doesn’t cover custodial or long-term care. You must meet certain conditions to get these benefits.

Cost: Most people are automatically enrolled in Part A and don’t have to pay a monthly premium if they or a spouse paid Medicare taxes while they were working. If you (or your spouse) didn’t pay Medicare taxes while you worked and you are age 65 or older, you may still be able to apply for Part A, but you will have to pay a premium. You pay up to $423 each month in 2010 if you don’t get premium-free Part A. This amount changes each year.

Medicare Part B

Medicare Part B helps cover medically-necessary services like doctors’ services, outpatient care, and other medical services that Part A doesn’t cover. Part B is optional. Part B helps pay for covered medical services and items when they are medically necessary.  Cost: Most people will pay the standard monthly Part B premium of $96.40 or $110.50 for 2010, but some people will pay a higher premium based on their income. If you are single (file an individual tax return) and your yearly modified adjusted gross income is more than $82,000 or if you are married (file a joint tax return) and it is more than $164,000, your monthly Medicare Part B premium may be higher than the standard premium. These amounts change each year.

Also, in some cases, your monthly premium amount may be higher if you didn’t sign up for Part B when you first became eligible. The cost of Part B may go up 10% for each 12-month period that you could have had Part B but didn’t sign up for it. You will have to pay this extra amount as long as you have Part B, except in special cases. You can find out if you have Part A and/or Part B by looking at your Medicare card. Your card may look slightly different than the card below. It’s still valid. Keep this card safe. You will use this card to get your Medicare-covered services in Original Medicare.

Medicare Part C

Part C: Medicare Advantage Plans (like HMOs and PPOs) are sometimes referred to as Medicare Part C. There are private health plans that Medicare approved of to offer health care to eligible people. When you join a Medicare Advantage Plan, you are still in Medicare.

Medicare Advantage Plans provide all of your Part A (hospital) and Part B (medical) coverage and must cover medically-necessary services. They generally offer extra benefits, and many include Part D drug coverage. These plans often have networks, which mean you may have to see the plan's doctors and go to certain hospitals to get care. Medicare Advantage Plans can save you money, since out-of-pocket costs in these plans are generally lower than with Medicare alone. However, your cost will vary by the services you use and the type of policy you purchase.

Plans options can include:

· Medicare Preferred Provider Organization (PPO) Plans

· Medicare Health Maintenance Organization (HMO)

· Medicare Private Fee-For-Service (PFFS)

· Medicare Special Needs Plans (SNP)

· Medicare Medical Savings Account (MSA) Plans

You can generally join if:

· You live in the service area of the plan you want to join.

· You have Medicare Part A and Part B coverage.

· You don't have End-Stage Renal Disease (permanent kidney failure requiring dialysis or a kidney transplant)   

Medicare Part D

Medicare offers prescription drug coverage (Part D) for everyone with Medicare. To get Medicare Part D drug coverage, you must join a Medicare drug plan. Medicare drug plans are run by insurance companies and other private companies approved by Medicare. Each plan can vary in cost and drugs covered. Even if you don’t take a lot of prescription drugs now, you should still consider joining a Medicare drug plan.

If you join a Medicare drug plan, you usually pay a separate monthly premium in addition to your Part B premium. There are two ways to get Medicare prescription drug coverage:

· Join a Medicare Prescription Drug Plan. These plans (sometimes called “PDPs”) add drug coverage to Original Medicare, some Medicare Cost Plans, some Medicare Private Fee-for-Service (PFFS) Plans, and Medicare Medical Savings Account (MSA) Plans.

· Join a Medicare Advantage Plan (like an HMO or PPO) or another Medicare health plan that includes prescription drug coverage. You get all of your Medicare coverage (Part A and Part B) and prescription drugs (Part D) through these plans. These plans are sometimes called “MA-PDs.”

Even if you wait to sign up for Medicare drug coverage, you won’t have to pay a late-enrollment penalty if you have been covered under certain other types of prescription drug coverage, called “creditable prescription drug coverage.” You may not have to pay a late-enrollment penalty if you join later and you have creditable coverage through another source. This could include drug coverage from a former employer or union, TRICARE, the Department of Veterans Affairs, or certain Medigap policies. Your current prescription drug coverage is required to tell you each year whether the drug coverage you have is creditable. Keep this annual notice, as you may need it if you decide to enroll in a Medicare drug plan later.

Your Yearly Medicare Review

EACH YEAR, MEDICARE PLANS CAN CHANGE WHAT THEY COST AND COVER. Every fall, all people with Medicare should review their current health and prescription drug coverage. Shop and compare to find the best plan for you.

IS YOUR PLAN STILL A GOOD PLAN FOR YOU?

Medicare can show you plans in your area that may:

· Cost less

· Cover your drugs

· Let you go to the providers you want, like your doctor or pharmacy

You can also get:

· An estimate of your out-of-pocket costs

· Quality and customer service ratings from current plan members

REMEMBER, MEDICARE PLANS CAN CHANGE EACH YEAR    IMPORTANT MEDICARE DATES

October—Review and Compare

Review: Your plan may change. Review any notices from your plan about changes for next year.

Compare: In mid-October, use Medicare’s tools to find the best plan for you.

November 15—Enrollment Begins

Decide: November 15 is the first day you can change your Medicare coverage for next year. This is the one chance each year most people with Medicare have to make a change to their health and prescription drug plans. Enroll as soon as possible—the sooner the better—to avoid any issues at the pharmacy counter in January.

December 31—Enrollment Ends

In most cases, December 31 is the last day you can change your Medicare coverage for next year.

January 1—Coverage Begins

Your new coverage begins if you switched to a new plan. If you stay with the same plan, January 1 is the date that any changes  to coverage, benefits, or costs for the new year will begin.