A Medicare Primer; The safety net is full of holes. You need to help prepare your fiftysomething clients

• Published in: Bank Investment Consultant 2009-01, Vol.17 (1), p.34
• Main Author: Lund, Marlene
• Format: Magazinearticle
• Language: English
• Subjects: Baby boomers; Beneficiaries; Costs; Health care policy; Health insurance; Hospitals; Insurance coverage; Insurance industry; Investment advisors; Medicare; Prescription drugs; Reimbursement
• ISSN: 1543-2068

Most people Believe Medicare is their health safety net, but it's full of holes, and those holes are going to get bigger as the population ages. There are over 47 million people on Medicare today, and it's growing. By 2011, 10,000 additional baby boomers will be added to the program every day. Medicare has four basic parts: PART A through D. PART A: Everyone who has at least 40 quarters of employment during which they paid into the system (or is the spouse or widow[er] of someone who did) is entitled to PART A with no premium. PART B covers 80% of approved charges such as physician services, outpatient surgery, durable medical equipment (oxygen equipment, hospital beds, walkers, wheel chairs, etc.) Flu and pneumonia shots, screenings, ambulance services and laboratory fees. PART C: Medicare tried to balance the budget and Medicare Part C (Medicare Advantage Plans) was the result. These plans are options like HMOs or PPOs that are approved by Medicare and offered by private carriers, to whom Medicare pays a fixed amount. Part D is the voluntary prescription drug plan introduced in 2006. A person must be enrolled in either Medicare Part A or Medicare Part B to participate. Medicare doesn't cover chronic, custodial care such as bathing, dressing, eating, mobility, continence and toileting. Medicare doesn't help with the ordinary vulnerabilities of simply growing old.