A detailed review about Medicare

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SEP 08, 2019 AT 05:06 AM

Many people are aware of the information about Medicare but some of the people aren't. This program was created by Congress as a part of the Social Security Act in the year 1965. For different health problems, medicare offers and provides different types of plans. These plans make consumers choose based on the costs of medical expenses.  The Medicare program is run by the federal agency named Thecenters for Medicare & Medicaid Services (CMS) which is one of the branches of   Health and Human Services (HHS). CMS not only monitors the medicare program and also Medicaid programs.

How they cover your policy

Medicare almost covered 56 million people in the year of 2016 which consists of two parts namely Part A & Part B. Part A represents Hospital Insurance whereas Part B represents Medicare Insurance. The insurance money comes from the Trust funds provide by Medicare. The fund can be paid or transferred to the trust funds in which account is held by the U.S. Treasury. The funds paid through this are only used for Medicare. Two trust funds help to pay the fund namely the Hospital Insurance Trust Fund and Supplementary Medical Insurance (SMI) Trust Fund. Hospital Insurance Trust Fund- Fund can be done by payroll taxes paid by most employees, employers, and people who are an entrepreneur.

Tax benefits

Some other ways of fund sources are Income taxes paid by a person on the Social Security benefits, Interest earned from the investments on the trust fund. It pays for the inpatient hospital care, skilled nursing facility care (Injections and special therapy for certain treatment that should be only given by a specific doctor or nurse), home health care (service provided by a doctor by getting into your home), and hospice care (This involves a team of people to address the patient). Supplementary Medical Insurance Trust Fund- It is funded by congress, those people enrolled themselves in the Medical Insurance (Part B) as well as Medicare prescription drug coverage which both of them from premiums, Interest earned from the investments on the trust fund. It pays for medical expenses like doctor services, outpatient hospital care, home health care (did not cover under Hospital Insurance), lab tests, durable medical equipment, drug coverage, and administration like paying benefits costs, fight for fraud and abuse.

Know about the plan before you going to choose

To know about the details of the Medicare advantage plan, search it online plan-finder tool of medicare. Medicare advantage plan can be used only when you provide the information available in the medicare card which includes the specified number and the coverage plan began dates (both Part A & Part B). The consumer's enrolled Medicare plan can be changed only in a certain period of time in an open enrollment period. Similar to the other plans, it does also have a number of rules like the coverage for treatment, responsibilities of a patient and so on. Every plan has an annual limit which may be cost-effective for some consumers.