Insurance

Medicare

Medicare is the federal health insurance program for Americans 65 and older and certain disabled Americans. You can elect to be covered by Medicare if you or your spouse is eligible for Social Security or Railroad Retirement benefits. In some cases, if you are not eligible for Social Security, you may pay an additional premium for Medicare coverage. The Medicare program has two parts, Part A and Part B. You may choose to be covered by one or both programs.

Medicare Part A (Hospital Insurance) helps pay part of the cost of inpatient hospital care, limited care received in a Medicare-certified skilled nursing facility, home health care, and hospice care. You pay no premium for Part A coverage, but you are responsible for paying deductible and coinsurance charges.

Medicare Part B (Medical Insurance) covers physician services, outpatient hospital care and lab services. There is a monthly premium for Part B coverage plus a yearly deductible. In addition, all charges require a 20% coinsurance payment.

Medigap Policies provide supplemental health insurance for people covered by Medicare. These policies fill some of the gap between the actual cost of medical care and the amount Medicare will pay. Medigap policies usually cover the co-pay charged by Medicare as well.

Private Long-Term Care Insurance

Most of the coverage provided by Medicare, HMO’s, and private supplemental insurance is for acute care, including doctors’ charges, hospital fees and prescription drugs. Long-term care is often not covered by these plans. Long-term care is usually required because of a disability, chronic illness or other debilitating condition lasting over months or years. While long-term care is often associated with problems of aging, people of all ages can need long term care if they have suffered an accident or a lengthy illness.

A wide variety of long-term care policies are now available through private insurance companies. Before purchasing a policy, a careful review of services covered, length of coverage and any limitations on coverage will help determine which policy is right for you.

Medicaid

Medicaid is a joint federal/state program that pays for health care for individuals with very limited financial means. Medicaid regulations vary from state to state, but federal law restricts eligibility to those at or below the governmental poverty line. With few exceptions, you cannot give away assets in order to qualify for Medicaid.