Posts tagged 'medicare premiums'
Every year there are a few changes to Medicare that Medicare recipients should know about. With all the confusion about health care reform, the information for 2010 is as important as ever.
One of the things that will happen in 2010, unfortunately – but not totally unexpectedly – is that the Premiums for Medicare Part B will rise. Since income determines your premiums, if you are single and your income is less than $85,000 your premiums will go up from the 2009 figure of $96.40 to $110.50 per month in 2010.
It becomes a bit confusing when it comes to filing a joint tax return. If filing joint and your income is $170,000 or less, each beneficiary will pay $110.50 per month. The individuals who file a single return and whose income is between $85,000 to $170,000 will pay $154.70 per month.
This is the same for those filing jointly whose income is between $170,000 and $214,000. If your information isn’t listed here, you can check with Centers for Medicare and Medicaid (CMS) or www.medicare.com, or in the Medicare and You booklet which has a chart explaining premiums.
As for Medicare part A and B there are also changes coming. Medicare Part A which covers hospital bills has a deductible that will go up from $1,068 in 2009 to $1,100 in 2010. It is important to be aware that this deductible applies to every hospital visit, so each time you are in the hospital, then out for 60 days and have to go in after the 60 days is up, you are charged with another deductible. If you go back into the hospital within the 60 days, you don’t get charged again for the deductible.
Part B covers medical expenses and will go up in 2010 from $135 per year to $155 per year.
If you have a Medigap policy, it is important to know that Part J will be discontinued as of June 2010. If you already have the policy, however, you can keep it and maintain it if you pay the premiums and keep the coverage in force.
Most likely Plan J will become very expensive – in fact, it will be more expensive than people can afford to pay – especially as they sign up for Medigap policies, which are much more affordable. As this happens more and more – less people using Part J because they go to Medigap or pass away – the rates for Part J will continue to rise, eventually making it too expensive for most seniors to enroll in. Plan J will eventually be eliminated along with Plans E, H and I.
If you have to get coverage, the minimum suggested is Plan C. In addition, if you need more coverage, 100 percent coverage is offered after basic Medicare through Plan F. Plan C and Plan F will continue to be available and the government will be adding Plans M and N. There is no information on the approximate cost or which states they will be available in.
Plan M will pay up to half of the deductible for Part A if you go into the hospital.
Regarding office visits, Plan N will have a co-payment of $20 per office visit and a sliding scale of up to $50 for emergency room visits. Plan K and L will also stay available, but offer benefits that are somewhat limited.
The various plans are created and offered by the federal government. The issue is that these plans are available, whether or not they are available in your state is up to the Insurance Commissioner in your state, so different states can have different plans available.
Regardless of any changes or proposed changes, your coverage will stay the same for a while. Medigap plans will not have changes until June 1, 2010, so you can purchase any of the plans available in your state until then.
As the new administration takes on the responsibility of fixing some of the issues left behind from the old administration, it has become apparent that this will be no easy task.
Everybody from people on main street to the people on Wall Street have known for quite some time that things have needed to change. Main street is just trying to survive, and as the economy has gotten worse many on main street are losing the battle of surviving financially.
Folks on Wall Street are not immune, either. They may not feel the pinch as much, but many of them have lost millions and more. Some of the wealthiest people in the world have committed suicide due to the fact that they lost so much money, yet they were still some of the very richest people in the world even after they lost the money.
One of te issues that begs to be cleaned up is Medicare and Medicaid. With general budgets out of control and lawmakers divided as to how to fix a number of programs, especially healthcare, this is a battle that will be hard fought.
As it is, people can barely keep up with various premiums and copays. Time will tell what affect lawmakers will have in trying to adjust benefits and premium so that people can still afford Medicare and Medicaid and not lose some of the services they need.
Even though there have been promises of non-partison ways to work on the many serious issues facing Congress, from the beginning there has been a tremendous divide between Republicans and Democrats. In fact, trying to fix the economy by passing a bill was a tremendous task. The President and many of the Democrats adjusted the proposed bill over and over to accommodate Republicans. In the end however no Republicans voted for the bill. In other words, the President and the Democrats could hav left the original bill the way they wrote it rather than take the time to give the Republicans the changes they asked for and not get any support anyway. That would have saved a lot of time and delivered a more solid bill, according to the Democrats.
The President and Congress are trying to fix the Medicare Mess as well as the entire financial situation that has gone from bad to worse. Here's hoping that this can be done sooner rather than later from Main Street to Wall Street.
It seems that the Boomer generation is in a no man’s land when it comes to many things. Too old for this, too young for that. And Medical coverage is at the top of the list. Especially if you are ready to retire.
The issue is that if you retire early and try to keep your health insurance, it costs a fortune that most people cannot afford. On the other hand, finding your own individual plan can also cost an arm and a leg and provides less coverage than your medical coverage from work.
There may be a solution coming soon. Medicare may shortly have a buy-in for individuals between 55 and 64 years of age. This could solve a great many problems. The doctors and hospitals would get paid. The insured would be able to continue with their services and with their personal physician in most cases and the Medicare system would have money coming in to offset the expense of treating this group of people.
In addition, statistics show that people age 55 to 65 usually have less medical issues and less medical treatment than most people 65 and older. As a group, they have taken care of themselves better, they are healthier – or at least, the onset of serious health issues that come with age haven’t set in yet – and they tend to see the doctor less, using prevention rather than a cure.
The Medicare Buy-In may take a little time to put into place. Lawmakers are working out the details that would help cover the over 5 million boomers between age 55 and 64 who are uninsured. There would be premiums on a monthly basis to the tune of a few hundred dollars, but the premiums should be less than keeping up with payments for the insurance from the old job and COBRA.
Though the idea has been discussed for years, conditions right now are just right for a program like this to start. For questions, contact the Medicare office nearest you.
Every year in mid-November, enrollment for Medicare and Medicare Supplements begins. It can be a confusing time due to changes in coverage, changes in premiums and any fine print that comes along with the process.
Many seniors on Medicare are very worried about premiums going up for 2009. That is understandable, especially if a person is on a fixed income with very little or no wiggle room for extras.
The good news for 2009 is that the Centers for Medicare and Medicaid Services (CMS) has announced that Medicare Part B premiums, which cover some services that Part A does not cover including outpatient services, doctor services and other services. This means that any individual earning under $85,000 per year or any couple earning under $170,000 per year will pay the same Part B premiums that they paid in 2008.
Premiums are based on income so some premiums could be higher if you have a higher income. One important issue to think about is skilled nursing care, since Medicare and sometimes Medicaid will only pay for a specific amount of care. The care has to be administered after a minimum stay in the hospital and it also leaves a person responsible for part of the bill (currently at $128 per day) out of their own pocket after the first 60 days of care.
That is where it is important to look at additional care in the form of supplements, especially since Medicare will only cover 100 total days. Most seniors do not think they will ever need much care such as a nursing home or long term care facility, but statistics show that a high percentage of seniors spend up to 2.5 to 3 years in a nursing home or long term care facility between the time that they become eligible for Medicare and the time that they pass away.
So, during this time of the year while you can choose the coverage you feel is best, be sure to look at what is not covered and research options to fill the gaps.
Seniors enrolled in Medicare should receive Medicare information in the mail regarding their benefits in October. They should receive a letter and information telling them what they are covered for, what supplements they are enrolled in (if any) and any changes to their premiums and/or their coverage.
It is important to take the time to carefully read this information and make certain that you understand it. It will tell you what your 2009 premiums will be and will tell you what is covered, including prescriptions.
Prescription coverage will be very important to check over carefully. You could currently be covered for all of your medications, but there could be changes in coverage that might cover every medication except for one. This does not always happen, but it could.
In the event that one of your prescription medications is not covered it is important that you check with your doctor and see if there is an alternative or substitute prescription that would work in its place. Then you will have to check to see if the alternative or substitute medication is covered. If you can’t find a suitable alternative medication, you may have to check for a different supplement that will cover the medications you need.
Other things to consider are how much the premiums will increase, if any. Check to see if your co-pays will increase, as well. The more you know about your coverage, the better decisions you and your doctor will be able to make regarding your ongoing treatment.
The fact that this information is being sent to you in October gives you time to get the facts you need about your coverage before the open enrollment period for Medicare Part D, which is from November 15th through December 31st. That is the time during which you can switch plans if you need to, without any penalties for pre-existing conditions or other issues.
If you receive Medicare, be on the watch for your letter describing your current coverage in October. If you don’t receive it, call 1-800-MEDICARE. You can call the Seniors Health Insurance Information Program (SHIIP) at 1-800-443-9354 or check with them on the web at www.ncshiip.com. They are an organization that specifically helps seniors with insurance and Medicare questions and issues.
AARP is working hard to protect Medicare recipients from extreme Medicare premium increases. AARP volunteers delivered over 20,000 petitions to Texas Senator Kay Bailey Hutchison and John Cornyn in Dallas and Austin protesting the fact that premiums have doubled since the year 2000.
Congress must deal with this issue by June 30th to make sure that Medicare recipients are not denied access to physicians and the essential medical services their physicians provide. Though Medicare recipients have continued to pay their share, even when they have felt it has become an unfair share, things are now out of control, according to recipients and to AARP. It is time to deal with this issue – before time runs out – and it is essential to make sure that doctors can continue to treat their patients and patients can continue their access to and relationships with their doctors.
Though this particular situation and protest is taking place in Texas, where all Texans are under the strain of high prices for everything from bread to gasoline, Texas is not the only state that is dealing with Medicare struggles. Too many Medicare beneficiaries in Texas – and around the country – who cannot afford basic necessities, are now being forced to pay Medicare premiums that often put the beneficiaries in a situation where they have to choose between Medicare and the necessities of life.
AARP Texas President has stated that AARP is “asking the Senators to fix the problem of getting physicians paid and not just vote to raise premiums.” AARP has pointed out that Congress has simply been using band aids and not real long-term fixes to take care of Medicare issues. These fixes seem to continue to include increases in premiums to Medicare recipients rather than long term solutions that will not penalize the very individuals that these benefits are supposed to help.
Time will tell what will happen in Texas and how Congress will treat the 20,000 petitions. AARP, Congress and Medicare recipients will not only be watching Texas results, but, in these difficult times, they will be watching the Medicare issues throughout the country.
If you are receiving Medicare benefits but even with prescription coverage do not have enough money for drugs or premium, there is help available through the Social Security Administration.
Many people are not aware of this assistance. The assistance is $3,600 that can go toward your prescriptions or your premiums. This assistance is available once every year. This year, if you log onto the Social Security website at www.ssa.gov, you will be able to find the assistance by clicking on the box that says “I helped my mother today.”
There are a few limitations to this assistance. You must be receiving Medicare benefits. If you are single, you must make $15,600 or less annually. If you are married, you must make $21,000 or less as a couple annually. However; the Social Security Administration suggests that even if you are close to those numbers, you should check into receiving this benefit. You can apply on line on the Social Security Website, which is available 24 hours every day.
In addition to the information above, there is another plus to the program. The individual who is applying for this extra help does not need to be the one filling out the application. For instance, if the individual has a caregiver or spouse that could do the paperwork for them, especially if the individual has a disability that prevents them from doing the paperwork themselves, Social Security permits the caregiver, family member, friend or spouse to file on the individual’s behalf.
Since prescription drugs and extra premiums are of extreme concern to many people receiving Medicare, this program will provide relief for a great number of people. The program has been available, but has not been heavily marketed by the Social Security Administration.
If you are a Medicare recipient and need extra financial assistance for your premiums, prescriptions or other Medicare-related issues, be sure to go to www.ssa.gov, the official Social Security Website and explore this little-known option for help.
