There are many myths and misconceptions people have about Medicare coverage. Before you enroll in Medicare, it is important to clarify these issues so as to know what you will be covered for. In this guide, we’ll analyze the top three Medicare myths.
Myth 1: Original Medicare will pay for 100% of hospital costs
Before enrolling in Medicare, it is possible to think all your hospital and medical costs will be covered by Medicare. However, that is false as Medicare only covers 80% of the approved medical costs and the beneficiary covers the remaining 20% of the healthcare costs. Part A only covers some inpatient hospital costs or skilled nursing facility care after you meet the deductible. After the first 60 days in a hospital, beneficiaries are to pay daily coinsurance payments of $371. After 90 days, this charge increases to about $742 per lifetime reserve day. After 60 lifetime reserve days, Part A will no longer pay for the hospital costs. For skilled nursing facility care, Medicare Part A will stop paying after 100 days.
For Medicare Part B, beneficiaries must meet the annual deductible of $203 before the coverage kicks in.
Myth 2: Original Medicare will cover your prescription drugs
It’s normal to assume Original Medicare will pay for your prescription drug costs. However, this is not the case. Original Medicare does not provide coverage for prescription drugs. To get coverage for prescriptions, you will have to enroll in Medicare Part D. Part D is a prescription drug plan sold by Medicare-approved private insurers. There are several Part D tiers, with different levels of prescription drug coverage.
Each plan however contains at least two of the medications in the most prescribed category. Alternatively, you can also enroll in a Medicare Advantage plan that offers prescription drug coverage.
Myth 3: Medicare does not have a monthly premium
This is a really big myth that should have stopped where it started as it can cause major confusion and could cause significant financial issues.
Medicare plans do come with monthly premium payments. Part A, however, is premium-free for people who have paid up to 10 years of Medicare taxes while employed. People outside this category will pay regular monthly premiums to stay enrolled. Unlike Part A, Part B premiums are required for every beneficiary.
The monthly premium for Part B is about $148.50. However, if your income is high, then you will have to pay more. Other Medicare parts, such as Part C and Part D, come with their own monthly premiums. Part C can have premiums as low as $0 but have an average monthly premium of $21. Part D plans also have an average monthly premium of $30.50.
To stay enrolled in Medicare, you must continue to pay your monthly premiums regularly.
Wise Up Financial Helps You with Medicare!
At Wise Up Financial, our mission is to help you make the right Medicare decisions. For more information about Medicare and to clear up any confusion, contact us at 832-308-0123.