Medicare misconceptions are dangerous. They can wreak havoc on your retirement and financial plan. This article clears up three common Medicare misconceptions to help you navigate Medicare successfully.
1. Medicare is Free
Medicare Part A is free of premium for most people. But Part B has a monthly premium. In 2021, this premium starts at $144.60 a month. In addition to this premium, you are also responsible for deductibles and co-insurance.
For 2021, Part A has a $1,408 annual deductible. Your first 60 days of a hospital stay have no co-insurance charge. Then days 61-90 of your stay will cost $352 a day. A stay of 91 days or more comes in at $704 co-insurance per day. It is also important to note that only semi-private rooms are available under Part A coverage. Part B has a $198 annual deductible and 20% co-insurance on most doctor’s services.
These costs do not include any prescription drug coverage. To help fill in coverage gaps there are private companies that offer Medicare Advantage Plans and Medicare Supplement Plans.
Medicare Covers Everything
Parts A and B cover a percentage of the fees for hospital stays and doctor’s services. But there are many expensive services Original Medicare does not cover.
Here are a few examples:
- Private Hospital Room
- Dental Care
- Hearing Aids
- Eye Exams
- Chiropractic Care
- Long-Term Care
- Gym Memberships
- Out of Country Medical Expenses
The expenses of these services are out of pocket costs for you unless you sign up for an Advantage or Supplement Plan that will help cover these services.
You Can Enroll at Anytime
The initial enrollment period for Medicare varies for each person. This is a seven-month period that begins three months before your 65th birthday and ends three months after that same birthday. You can also enroll in a Medicare Advantage, Medicare Supplement, or Part D Prescription Drug Plan during this initial enrollment period. Additionally, you can enroll during the annual enrollment period which runs from October 5th to December 7th each year.
Applying for Medicare
Now that these common Medicare misconceptions are cleared up, you can successfully apply for Medicare. To apply for Parts A and B you will need to contact medicare.gov. For additional coverage, contact a private insurance company or a Medicare insurance agent.
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This article is for informational and educational purposes only. We are in no way affiliated with Medicare. You can visit their official site at www.Medicare.gov.