When you hear the word "Medicare," you are probably tempted to think about your 85 year old grandma sitting in her rocking chair, sipping tea and knitting her afghan.
In the past, when someone turned 65 and retired, often times, they aged very quickly and term Medicare became axiomatic with being a "senior.
" But those days are long gone.
With tremendous advances in medical technology, and a better understanding of nutrition, people are living out the last chapter of their lives, as if they had barely reached the middle of the book! The first wave of Baby Boomers, as they are often called (because of the population explosion after world war II) are beginning to turn 65 (and qualify for Medicare).
But Boomers no longer consider themselves to be seniors or even "old" in any sense.
It has been said that most 65 year olds see themselves as being 55 or younger and 55 year old boomers, why they are practically in their 30's.
In our business (Medicare-related insurance), we have always helped people, who for the most part, were confused about Medicare, but really wanted our help.
In these past couple of years, we have noticed a definite shift.
Boomers are also totally confused about Medicare, but they don't even want to talk about it.
Why? I think it's because they are still thinking about grandma and they don't want to think of themselves in that light.
Nevertheless, when you turn 65 (and sign up for Part B), you really don't have a choice, you have got to think about Medicare.
Why? Because when you "age in" to Medicare, you have a very special dispensation.
You can get Medicare Supplement insurance, and you can not be denied for any reason (except total kidney failure).
The fact is, by next year, 10,000 people will be turning 65 each and every day! And that number will only go up.
In the next decade, by some estimates, nearly 80,000,000 Boomers will age into retirement (or whatever it will be called by then) and qualify for Medicare.
We must not think of Medicare then as being "health insurance for the aged.
" In the next few years, Medicare should probably be relabeled as something like, "health insurance for your freedom years," because that's what it will be.
Now that we have a better definition for today's generation, lets see if we can unpack this convoluted thing called Medicare and then I'll discuss how to get it.
So then, what is Medicare? Medicare is government-run health insurance for people 65 years or older (you also get it if you have a qualifying disability).
When you turn 65, you automatically get enrolled into Medicare Part A (hospital insurance), even if you have other coverage, such as through your employer.
In most cases, you don't have to pay for Part A, since you paid for it in Social Security taxes.
You should get your Medicare card in the mail 3 months before you turn 65.
If you retire (get more freedom) when you turn 65 and/or you want out of your employer plan, you can get Part B (Part A is for hospitalization, and Part B is for outpatient stuff, like doctor visits, exams, x-rays, etc.
).
You do have to pay for Part B.
The premium for most people is $110.
50 in 2010 (it may be higher if your household income is above $170,000).
In most cases, your Part B premium will be deducted right out of your social security check.
There are three main things you should know about your Medicare coverage: 1) Medicare doesn't pay 100% of your costs.
You will be responsible for deductibles (with both Parts A & B) and co-insurance (like 80/20 plans) with your Part B.
2) Your share of medical costs could be significant, which is the purpose of Medicare Supplement insurance (often called Medigap, because it fills in the gaps left by Medicare alone).
The good news is, as mentioned earlier is that when you get Medicare, you get what is called an "Initial Enrollment Period.
" During this (almost 10 month) period, you can apply for your Medicare Supplement and you can't be turned down or rated up because of pre-existing conditions.
3) In almost every state, with the exception of three, every Medicare Supplement plan is "standardized.
" What this means is that a Plan F (a popular plan) from Company ABC has EXACTLY the same benefits as a Plan F from Company XYZ.
The only real difference is the price.
A Plan F from Company ABC might be $110 per month, but the same Plan F from company XYZ costs $190 per month.
It really does pay to shop around for a Medicare Supplement quote.
But honestly, if you do, you will get bombarded by a bunch of high pressure sales people.
The fact is, you probably have better things to do! This is why we recommend, find a trusted brokerage that can "shop around" for you.
It doesn't cost you any more than "going direct," and a good broker can work on your behalf for years to come.
Prescription drugs are covered separately from Parts A & B.
It's easy to remember because "drugs" are covered by "Part D.
" There are two main things you need to know about Part D: 1) Just like with Part B, you have to "opt in.
" Part D coverage is offered through private insurance companies that sell prescription drug plans.
It is important to keep in mind that drug coverage is not 100%.
Part D plans "help" cover the costs of your medications.
2) If you don't opt in, you might pay a penalty later.
The good news is, the premiums for Part D plans are pretty reasonable.
So, that is Medicare in a nutshell.
If you are turning 65, you can now rest easier knowing that Medicare is no longer the "insurance for grandma," it is now the "insurance for you.
" But no worries mate, you will probably have this insurance for a very long time! Enjoy.
P.
S.
You can click the link below to get more information about no-hassle, no pressure quotes from trusted advisors who can do all of the shopping on your behalf.
In the past, when someone turned 65 and retired, often times, they aged very quickly and term Medicare became axiomatic with being a "senior.
" But those days are long gone.
With tremendous advances in medical technology, and a better understanding of nutrition, people are living out the last chapter of their lives, as if they had barely reached the middle of the book! The first wave of Baby Boomers, as they are often called (because of the population explosion after world war II) are beginning to turn 65 (and qualify for Medicare).
But Boomers no longer consider themselves to be seniors or even "old" in any sense.
It has been said that most 65 year olds see themselves as being 55 or younger and 55 year old boomers, why they are practically in their 30's.
In our business (Medicare-related insurance), we have always helped people, who for the most part, were confused about Medicare, but really wanted our help.
In these past couple of years, we have noticed a definite shift.
Boomers are also totally confused about Medicare, but they don't even want to talk about it.
Why? I think it's because they are still thinking about grandma and they don't want to think of themselves in that light.
Nevertheless, when you turn 65 (and sign up for Part B), you really don't have a choice, you have got to think about Medicare.
Why? Because when you "age in" to Medicare, you have a very special dispensation.
You can get Medicare Supplement insurance, and you can not be denied for any reason (except total kidney failure).
The fact is, by next year, 10,000 people will be turning 65 each and every day! And that number will only go up.
In the next decade, by some estimates, nearly 80,000,000 Boomers will age into retirement (or whatever it will be called by then) and qualify for Medicare.
We must not think of Medicare then as being "health insurance for the aged.
" In the next few years, Medicare should probably be relabeled as something like, "health insurance for your freedom years," because that's what it will be.
Now that we have a better definition for today's generation, lets see if we can unpack this convoluted thing called Medicare and then I'll discuss how to get it.
So then, what is Medicare? Medicare is government-run health insurance for people 65 years or older (you also get it if you have a qualifying disability).
When you turn 65, you automatically get enrolled into Medicare Part A (hospital insurance), even if you have other coverage, such as through your employer.
In most cases, you don't have to pay for Part A, since you paid for it in Social Security taxes.
You should get your Medicare card in the mail 3 months before you turn 65.
If you retire (get more freedom) when you turn 65 and/or you want out of your employer plan, you can get Part B (Part A is for hospitalization, and Part B is for outpatient stuff, like doctor visits, exams, x-rays, etc.
).
You do have to pay for Part B.
The premium for most people is $110.
50 in 2010 (it may be higher if your household income is above $170,000).
In most cases, your Part B premium will be deducted right out of your social security check.
There are three main things you should know about your Medicare coverage: 1) Medicare doesn't pay 100% of your costs.
You will be responsible for deductibles (with both Parts A & B) and co-insurance (like 80/20 plans) with your Part B.
2) Your share of medical costs could be significant, which is the purpose of Medicare Supplement insurance (often called Medigap, because it fills in the gaps left by Medicare alone).
The good news is, as mentioned earlier is that when you get Medicare, you get what is called an "Initial Enrollment Period.
" During this (almost 10 month) period, you can apply for your Medicare Supplement and you can't be turned down or rated up because of pre-existing conditions.
3) In almost every state, with the exception of three, every Medicare Supplement plan is "standardized.
" What this means is that a Plan F (a popular plan) from Company ABC has EXACTLY the same benefits as a Plan F from Company XYZ.
The only real difference is the price.
A Plan F from Company ABC might be $110 per month, but the same Plan F from company XYZ costs $190 per month.
It really does pay to shop around for a Medicare Supplement quote.
But honestly, if you do, you will get bombarded by a bunch of high pressure sales people.
The fact is, you probably have better things to do! This is why we recommend, find a trusted brokerage that can "shop around" for you.
It doesn't cost you any more than "going direct," and a good broker can work on your behalf for years to come.
Prescription drugs are covered separately from Parts A & B.
It's easy to remember because "drugs" are covered by "Part D.
" There are two main things you need to know about Part D: 1) Just like with Part B, you have to "opt in.
" Part D coverage is offered through private insurance companies that sell prescription drug plans.
It is important to keep in mind that drug coverage is not 100%.
Part D plans "help" cover the costs of your medications.
2) If you don't opt in, you might pay a penalty later.
The good news is, the premiums for Part D plans are pretty reasonable.
So, that is Medicare in a nutshell.
If you are turning 65, you can now rest easier knowing that Medicare is no longer the "insurance for grandma," it is now the "insurance for you.
" But no worries mate, you will probably have this insurance for a very long time! Enjoy.
P.
S.
You can click the link below to get more information about no-hassle, no pressure quotes from trusted advisors who can do all of the shopping on your behalf.
