Medicare Facts You Need to Know

Cloud Peak Law Group/Mark S. Pierce, Esq.
Investment Centers of America/Colin Peldo, CFP®

Seminar Outline

  • What is Medicare
  • Medicare Facts
  • Part A vs. Part B
  • Who Pays
  • Medigap Supplements
  • Questions & Answers

Medicare Facts
   Medicare has four parts:
   A, B, C and D, which is for prescription drugs.

Medicare Part A (Hospital Insurance)
Pays for inpatient hospital care, some skilled nursing-facility care, hospice care and some home health care.  Most people get Medicare Part A automatically when they turn 65.

  • There is usually no premium or monthly payment for Part A.

Medicare Part B (Medical Insurance)

  • Pays for doctor services, outpatient hospital care and some other medical services that Part A does not pay for.  Part B pays for these services and supplies when they are medically necessary.
  • There is a premium for Part B.

WHO WILL PAY?
Don’t forget the deductibles




Medicare:  Pays for Skilled Care Only


BENEFIT

 MEDICARE PAYS
(Part A)

YOU PAY

First 20 Days

100%

NOTHING

  
Next 80 Days

  
All But $152/Day

$152/Day (Medigap, Medicaid?)

Beyond
100 Days

 
NOTHING

      
ALL COSTS

Observation/Outpatient
If you are admitted or are you placed in observation status:

        •   Part A – Inpatient
        •              versus
        •   Part B - Outpatient

Medigap Supplements 

  • Medicare Supplement Policy:will only cover some or all of the deductibles.  This is a policy that you will have to purchase separately.  Medicare supplements will not pay for custodial long-term care costs.
  • These supplemental policies are often referred to as “Medigap plans” and are purchased through private companies.  These supplements pick up co-pays and deductibles.

Two Approaches to Planning
PROACTIVE vs. REACTIVE
   Wait until it is too late and then react (badly) to your crisis.
                                    You lose Control
    Create a proactive plan before the crisis develops and reach your goal.
                                    You have full Control

 

ANY QUESTIONS?
Where’s the bathroom?