The Medicare program was created to help Americans and permanent residents over the age of 65 pay for medical expenses. It is run by the federal government and administered by the Centers for Medicare & Medicaid Services.
It was not designed to cover everything, nor does it pay for 100% of services and supplies that are needed. Although there are many options for individuals to supplement the original program, senior citizens are automatically enrolled in Medicare Part A, effective the month they turn 65. It pays for inpatient hospital expenses. Part B is an optional plan.
Whereas Medicare Part A benefits are available at no charge for most people, there is a premium for Part B as well as for all supplement plans. If an individual has not been employed at least 40 quarters, or 10 years in positions that pay into the Medicare system, there is a monthly fee.
In 2010, the premium for those who have worked 30 to 39 quarters is $254.00. For those who have fewer than 30 quarters of eligible work experience, the premium is $461.00. Originally intended only for inpatient hospital stays, it now covers some home health care and stays at skilled nursing facilities.
For each benefit period, the program covers all pertinent expenses except the Medicare Part A deductible during the initial 60 days as well as coinsurance expenses for those more than 60 days, but less than 150. For 2010, the deductible in this scenario is $1,100.00.
Under the plan guidelines, individuals pay $1,100 for hospital stays up to 60 days. For the time frame of 61 to 90 days, $275 is the daily out of pocket expense. For days 91-150, individuals are responsible for $550 per day and all costs after 150 days.
For inpatient stays at a skilled nursing facility, coinsurance is $137.50 per day for days 21 through 100 of each benefit period. Medicare Part A is only a portion of the insurance coverage that senior citizens can take advantage of once they have reached the age of 65. Medicare Part B covers physician's services, outpatient services at a qualified facility as well as home health and durable medical equipment.
The program includes A through L standardized plans, most of which are administered by private insurance companies. They offer the coverage needed on an individual basis to ensure seniors get the care they need at a cost effective price.