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May 2, 2016

Medicare Premiums

Medicare Premiums

Many people have a lot of questions about Medicare Premiums. Some have concerns about their cost, their coverage, or their processes. While it is true that costs of premiums may increase every year, there are basic guidelines, which every Medicare member may need to know. Most of these are probably familiar already, but here they are simplified and easier to group or chunk mentally.

First, there is the premium for hospital insurance. Technically, this does not cost anything to the member as long as he or she has been paying Medicare contributions or taxes for a minimum of 10 years. However, if the member does not fit this requirement, then he or she will need to pay for premium. The cost will depend on the number of months or quarters during which he or she has paid for the Medicare contributions. Moreover, he or she has to meet certain requirements before being considered as eligible for the coverage of the hospital insurance. The hospital insurance covers all hospitalization costs up to a certain period.

Next among Medicare Premiums is the medical insurance. The medical insurance is the one that covers the costs for the doctor’s fees, certain medical tests, clinical services, as well as outpatient services. For this premium, members have to pay a certain amount every month.

Because the medical insurance covers doctor-related expenses, a patient has to make sure if his or her doctor or any attending physician is willing to accept Medicare, or is among the list of Medicare’s accredited doctors. Otherwise, the patient will shoulder the expenses for that doctor. This is why most of the time, people choose Medicare-accredited doctors.

A common concern of most people is that even if the Medicare Premiums that they pay for will entail bigger medical benefits in the long run, they still have a hard time managing their monthly premiums, plus any additional expenses that is not covered by Medicare. While it is true that their medical costs are lessened because of Medicare, there is still a huge chunk to be paid for anything that Medicare does not cover. This is especially toughest for those on tight budgets but need to undergo treatments and take specific medications.

In these cases, there are private insurance companies who offer to take care of anything else that Medicare does not cover. Of course, this will entail another set of monthly or yearly dues, but just like with Medicare, a fixed payment is not at all bad compared to what these companies will shoulder later on, when the need arises.

If a person decides to enroll for these private insurance companies, which will take care of the expenses outside of Medicare, he or she has to pick a specific company as early as possible. In most cases, the further up a person goes beyond 65 years old, the cost increases as well. Hence, it is highly advisable for people to apply for a membership as early as possible and pay for the lower cost.

An article by John Clayton

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