3. Medicare

Medicare, a federal program administered by the Center For Medicare and Medicaid, is available to people at age sixty-five or those with end-stage renal disease. There are two parts to Medicare. Medicare PART A covers hospitalizations, skilled nursing care, home health care and hospice. There is no charge for Medicare Part A benefits unless you have not had more than thirty-nine quarters of Social Security coverage. If you have had less than thirty-nine quarters, you can purchase Medicare Part A. Medicare PART B covers doctor and medical services, equipment, therapies, lab tests and x-rays. Part B costs $78.20 per month (2005 rates) and is an optional benefit.

Medicare pays for care in skilled nursing facilities, and for home health care for a limited time period. Medicare does not pay for long-term care, when people need assistance with activities of daily living, or supervision due to cognitive impairment. Medicare was not designed to cover chronic conditions.

Medicare Supplements
There are ten standard Medicare Supplement policies on the market. They are also known as “Medigap” coverage. These policies pay the co-insurance amounts that Medicare does not pay. For example, on days 21-100, Medicare pays everything except $114.00 per day (2005 rates). A Medigap policy would pay that. (Medicare Supplement plans A and B do not cover this co-payment for skilled nursing facilities). If Medicare does not pay for care or services, then the Medicare Supplements will not pay either. There are a few exceptions to this.

If you have questions about the Medicare program, you can call the Social Security Administration at 800-772-1213. They can answer questions about eligibility.