Medicare is the federal health insurance program for senior citizens – but not nursing home insurance. This is a common misconception because although Medicare does offer a nursing home benefit, it is strictly limited, paying for a short stay in a skilled nursing home facility following a minimum hospitalization period. Medicare will cover a partial amount of the cost of home health care if certain conditions are met.
Individuals eligible for Social Security benefits are automatically eligible to receive basic Medicare benefits once reaching age 65. There are three components to Medicare: Part A (hospitalization), Part B (doctor care) and Part D (prescription drugs).
There are several Medicare/healthcare planning issues to consider at your 65th birthday. If you have satisfactory existing comprehensive medical insurance coverage (including drugs) that continues past your Medicare eligibility age, you may elect to defer enrollment in Medicare A/B/D. You must, however, enroll in Medicare Parts A/B/D shortly after turning age 65 if you do not have equivalent health insurance coverage in the private sector.
Purchasing a Medicare supplemental insurance (“Medigap”) is prudent to fill in many of Medicare’s gaps in health coverage. In addition, a Part D prescription drug insurance plan must be purchased at or near your Medicare enrollment date or permanent premium penalties can be assessed.
The cost and caliber of healthcare will be a key factor in the quality of your retirement. We can help you better understand the Medicare program and make the right decisions regarding your Medicare planning.
