Medicare is an insurance program for people 65 years or older, managed by the U.S. It relies on payroll taxes, premiums and general revenues to provide healthcare services through private insurance companies. It is generally considered to be an example of a highly successful medical insurance program and provides coverage for seniors for most health care exposes. Sometimes Medicare Supplement insurance is needed to pay for costs not covered by the plan.
How to enroll for Medicare
Medicare was first introduced in 1966 to provide health insurance for seniors. People over the age of 65 can enroll during the Medicare Fall Open Enrollment between October 15 to December 7. Their insurance coverage will begin from January 1. Sometimes people are signed up automatically when they turn 65.
Medicare also pays health care expenses for some people who are on disability, if recommended by the Social Security Administration. According to the Centers for Medicare and Medicaid Services, people who are automatically enrolled will be mailed the red, white, and blue Medicare card 3 months before their 65th birthday or before the 25th month of disability.
What does Medicare cover?
At the present time, Medicare health insurance covers more than 55 million people. Of these 46 million are seniors over the age 65 and 9 million are younger people on disability. As of 2014, total Medicare payments amounted to $597.2 billion, according to figures released by the Congressional Budget Office in 2015.
Medicare pays for about about half of the health care expenses for beneficiaries. The remainder must be paid through Medicare supplemental insurance, other insurance policies, or out-of-pocket. Out of pocket costs are needed to pay for services like long-term care and dental, hearing, and vision care. In 2012, the average Medicare costs for each household totaled $4,722.
The benefits of Medicare
Medicare provides health insurance for seniors and other vulnerable groups. By 2013, the number of people enrolled in was 39.7 million. This number increased to 55.7 million in 2015 and by 2030, 81 million people will be enrolled.
Most seniors suffer from chronic conditions like diabetes, heart disease, arthritis and more. The biggest expenses in healthcare are on chronic conditions rather than emergencies. With Medicare and Medicare supplement insurance, health care expenses for seniors are no longer a burden.
Medicare is frequently seen as a successfully managed health care program. By covering medical costs for seniors, it helps them to live a healthy life. With Medicare and Medicare supplement insurance, they can enjoy a healthy retirement.