Medicare is a national social insurance program that is run by the United States federal government. The program guarantees basic health insurance for persons over the age of 65 and for people with disabilities and end stage renal disease. Medicare differs from private insurance in that it spreads the financial risk associated with illness across society, thereby protecting everyone. The program was first institute in 1965 and has been modified many times since.
Medicare offers all enrollees a defined benefit. Part A of the entitlement covers hospital care and Part B covers outpatient medical service. Under these two parts, Medicare offers a choice between an open-network single-payer plan and a network plan, where the federal government pays for private health coverage. A majority of Medicare enrollees opt for the former rather than the latter, which is also known as Medicare Part C or Medicare Advantage plan. In 2003 Medicare Part D was created under the Medicare Modernization Act. Medicare Part D covers outpatient prescription drugs exclusively through private plans, either standalone prescription drug plans or through Medicare Advantage plans that offer prescription drugs.
As of 2010, Medicare provided health insurance to 48 million Americans. Medicare serves a large population of old, sick, and low-income people, many of whom would be unable to afford health care otherwise. On average, Medicare covers nearly half the health care costs for enrollees. The out-of-pocket costs for enrollees vary depending on the amount of health care a particular recipient needs; such costs may include services for long-term dental, hearing, and vision care.
To cover out-of-pocket expenses for long-term care some Medicare enrollees turn to supplemental insurance plans called Medigap plans. These plans fill in the holes in original Medicare (Part A and B) and are sold and administered by private companies. Some Medigap policies sold before 2006 may include coverage for prescription drugs. Medigap policies sold after the introduction of Medicare Part D on January 1, 2006 are prohibited from covering drugs. Medicare regulations prohibit a Medicare beneficiary from having both a Medicare Advantage Plan and a Medigap policy. However, Medigap Policies may be purchased by beneficiaries who are receiving benefits from Medicare Part A and Part B.
For Medicare recipients finding the right Medigap policy can literally mean the difference between life and death. As most persons are aware health insurance costs in America continue to rise; and people who are old or disabled are especially vulnerable to such fluctuations. Fortunately, getting the right supplemental insurance just got a lot easier.
If you are a Medicare enrollee, you can now visit websites dedicated to viewing and comparing different Medigap policies. Many of these sites provide Medicare Supplemental Insurance comparison charts that aid you in identifying the best Medigap Supplemental Insurance carrier to meet your needs. After you have found the policy that is most suitable, the sites enable you to print out the Medicare Supplemental Insurance application and to contact professional agents who can guide you through completing the Medigap Insurance application. These websites are committed to helping people make critical decision about their health and their future.