Medicare Overview

Established in 1965, Medicare is a federal health insurance program that provides health care coverage for individuals age 65 and older. The program also covers certain persons under age 65 with disabilities.

Medicare consists of Hospital Insurance (Part A) and Supplementary Medical Insurance (Part B). Part C refers to the Medicare Advantage program (formerly known as Medicare+Choice) under which private plans provide Medicare benefits to enrollees.

Important Dates to Remember

November 15, 2005 and May 15, 2006: If you are already enrolled in Medicare, you’ll need to join a plan between November 15, 2005 and May 15, 2006. Note: If you don’t sign up during the first open enrollment period from November 15, 2005 to May 15, 2006, it will cost more in enrollment fees. December 31, 2005: For your coverage to begin on January 1, 2006, you must sign up by December 31, 2005. If you enroll later, between January 1, 2006 and May 15, 2006, your coverage starts the first day of the month after you sign up. After May 15, 2006: There will be an open enrollment period each November allowing you to enroll or switch plans.  You will also be able to enroll in a drug plan at the time you first enroll in Medicare.

TODAY’S MEDICARE HAS TWO PARTS

Part A:

• Helps you pay for care in hospitals as an inpatient and at critical access hospitals, skilled nursing facilities, hospice car and some home health care facilities.

Part B:

• Enrolling Part B is optional and most people pay monthly for this coverage.  You can sign up for Part B anytime during a 7-month period that begins 3 months before you turn 65.  After that, there is usually a penalty.

• Part B helps pay for doctors’ services, outpatient hospital care and some other medical services that Part A does not cover, such as physical and occupational therapy and some home health care.

A voluntary outpatient prescription drug benefit (Part D authorized by the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 or MMA) will be implemented in 2006. This part of the plan is new and is the part of Medicare you will need to decide if this new program is right for you.

For detailed information go to “Medicare and You 2006"  and to understand your benefits, go to “Your Medicare Benefits”.

 

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