Medicare covers more than 40 million Americans.
Medicare is our national health-care program for senior citizens and covers more than 40 million Americans. There are two primary parts to Medicare, Part A and Part B. Part A covers inpatient hospital care, skilled nursing, home health and hospice care. Part B covers doctors' services, outpatient care, preventative services, diagnostic tests, some therapies and durable medical equipment. Medicare Part D, the newest addition to Medicare, covers prescription drugs.
General Qualifications for Medicare Part B
Medicare Part B is available to all Americans age 65 and older, to those under age 65 with certain disabilities, and to anyone with End-Stage Renal Disease (ESRD). You can enroll in Part B any time during the seven-month period beginning three months before the month of your 65th birthday and continuing until three months after your birth month. There is a monthly premium for Part B that is $110.50 for those new to Medicare in 2010 and may be more for single persons with income over $85,000 and married couples with income over $170,000. You are eligible for Medicare Part B even if you are taking Social Security benefits, but if you are not, you will need to contact Social Security to apply for Part B.
Part B Qualifications for those with Disabilities
If you have Social Security Disability Insurance (SSDI) or Railroad Retirement Benefits (RRB), you may enroll in Medicare Part B starting three months before your 25th month of disability benefit entitlement, and your coverage will begin in the 25th month. If you have ALS, you will automatically be enrolled in Medicare Part B the first month you receive disability benefits. Those with ESRD who are on dialysis can get Medicare coverage beginning the fourth month of dialysis treatments, but coverage may begin sooner under certain circumstances. Monthly premiums for Part B are based on income as described earlier, with most people paying $110.50 in 2010.
Deferring Medicare Part B Enrollment
It is possible to defer enrollment in Part B if you have other medical insurance from an employer or union. When this coverage ends, you will have eight months to enroll in Part B without a penalty. The government will also require a letter of creditable coverage from your previous insurer saying that the coverage that you had was as good as or better than that offered by Medicare. General enrollment for Part B is January 1 through March 31, annually.
If you do not enroll in Part B when you are eligible and if you have no other medical insurance, you will be assessed a penalty if you enroll in the future. The penalty in 2010 is 10% of the monthly premium for each 12-month period you were eligible but chose not to enroll. That penalty will be added to your monthly premium for as long as you have Part B.
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