Medicare Premiums: Should My Company Pay For It?

Reaching the age of 65 does not have to always mean you’ll be ready to retire. The truth is, an increasing number of seniors and baby boomers in the U.S are continuing with their daily work routine past the age of 65. As per the recent U.S. Jobs report, 32 percent of seniors above the age of 65 were employed during the last quarter. Additionally, there has been a steady increase in the number of seniors above 70 who’re either unable to retire or declining their retirement. As the number continues to rise each year, it seems like a continuous trend.

 

What happens when a senior who’s enrolled in an Employee Sponsored coverage decides to continue working after the age of 65? Should he/she drop the employer’s coverage to purchase Medicare? Or stay with their Employee coverage and delay their enrollment in Medicare? Will, your company pays for the Medicare premium?

 

A company can pay your Medicare premium if you are an active employee and the group’s health coverage is integrated with the company’s payment policy.

 

Another means through which an employer could pay is via IRC also known as the Internal-Revenue-Code. The reimbursement guidelines under section 105 of this plan let employers provide an allowance to their Medicare-insured senior members for various medical premiums which also includes Part B and Part D Medicare, Medigap & Medicare Advantage.

 

Should You Purchase Medicare or Depend on Your Employee Plan?

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Everyone who is above 65 requires health coverage irrespective of whether you receive it via your company, Medicare or your partner’s employer plan.

 

Now, when it comes to picking the right option, you’ll need to consider key features of the plan, deductibles & maximum out-of-pocket expenses prior to making any decision.

 

Also, you want to make sure that your current doctors accept monthly premiums. In case you’re satisfied with your employee plan, it is wise to continue with it as your main source of coverage.

 

By sticking with your company’s group health policy, you will be able to check with Medicare for determining whether you can postpone your enrollment in Part B. At times, your employer might need you to purchase Medicare.

 

If you wish to drop the group health coverage and if you are married and your partner is enrolled under your company’s plan, it might be worth to review the plan options to know when they lose the coverage from your company’s plan.

Part 1: Factors that Lead to the Creation of Medicare Advantage Plans

insurance agencies came up with Medigap or Medicare Advantage plans for helping seniors get covered against different cost-sharing which would have to pay under the new insurance plan for elderly. The advantageal plans were intended for helping seniors cover the expenditure of Part A & Part B co-insurance and deductibles. For several years, seniors were offered only these type of advantageal plans. However, in 1997 under the Act of Balanced Budget, the federal government came up with an entirely new plan known as Medicare Advantage Plan.

 

But, these plans operate very differently as compared to the advantage plans. So, it becomes essential for you to know the difference prior to making your choice,

 

Enroll in a 2019 Medicare Advantage Plans: https://www.medicareadvantageplans2019.org

 

To start with, there were was an ever-increasing expense associated with Medicare & Medigap plans. With rising inflation increased the overall cost of Medicare co-insurance & deductibles.

 

Secondly, a number of citizens in the US depended on social security as their only source of income after retirement. At times, it was too late for them before realizing this income wasn’t actually enough for them for meeting their day-to-day needs. This issue further worsened because Medicare didn’t pay for their retail prescription medications. As a result, most seniors required to pay for these expenses on their own.

 

When a few beneficiaries wanted to drop advantage plans and took their chances, a number of mishappenings soon followed. A person who is healthy at the age of 65 may have opted to stay away from health insurance. But, when he/she later developed a disorder that required, for instance, a chemotherapy, they found themselves facing huge expenditures for the twenty percent which they owed after Medicare compensated its 80% share. The government was concerned over the fact that these people would then be denied a proper care since they could not afford it.

 

Last but not the least, there have always been some issues with Medicare Plans since there’s hardly any way of estimating exactly how much a person will be spending on health care expenses every year. A few people might pay way less because of their good health while others might have to pay a huge amount for enjoying the same benefits.

 

The above scenario lead to a guessing game when the Federal government tried to estimate how much they would have to spend each year on the senior healthcare in the country.

 

As a solution to these problems, the government came up with that allowed private insurance agencies sell their own Medicare plans, which is initially known as Medicare+Choice coverage. Later it evolved into Medicare Part C or the Medicare Advantage Plan.

 

Before signing your Medicare Advantage Plans for 2019, know the basics

So, first of all, we have to understand what Medicare Advantage Plan comprises of or how this plan will help the individual?

So, when you combine Medicare Part A and Medicare Part B you get Medicare Part C. This Part C is known as Medicare Advantage Plan. There is a very good reason why it is called Medicare Advantage Plan.  This is because Medicare Advantage Plan help with Hospital cost, Doctors’ visit and other Medical services that you will get with Original Medicare. There’s more. They can also cover prescribed drug coverage as well as coverage for vision and hearing and can even cover gym and health club membership.

Eligibility criteria for Medicare Advantage plans

All the services of the Medicare Advantage plans for 2019 come in just a single plan with only one Plan ID Card. The Medicare Advantage Plans are run by Private Insurance companies.

Now before getting eligible for your Medicare Advantage plans for 2019, you have to meet certain criteria and also have to pay you monthly, quarterly or yearly Part B premium. Premiums are some small amounts that are to be paid to the insurer till the plan matures or according to each insurers policy.

Facts to know before indulging in Medicare Advantage plans

Most of the Medicare Advantage Plan comes with an annual Deductible in order to help you keep your monthly premium down. You pay a Co-pay or a Coinsurance for only the services you use and not for the ones you don’t.

According to your need, applying for the right Medicare Advantage plans can help you keep your cost of health benefits down. For example, in some Medicare Advantage Plan, you have to choose a doctor who is on the Plan’s network. Another Medicare Advantage Plan may offer you with more choices and doctors by letting you get services out of the network. But in that case, the payments may be a bit more.

All Medicare Advantage Plans are the same, but the availability of the services varies from region to region (applies to all states and county of the USA and worldwide). So before applying for a Medicare Advantage Plan for 2019 make sure to know all the available services in your respective area.

One can surely apply for Medicare Advantage plans for 2019 when they hit the age of 65 or once a year during the Annual Enrollment period.

So these are pretty much the basics of Medicare Advantage Plan before applying for one before the start of 2019. Also, any more questions related to Medicare Advantage Plan can be checked in Medicare’s original website-  medicare.gov

Why Do Seniors Need Plan F?

The basic and unique coverages gave by Medicare are Part A (hospitalization) and Part B (doctor visits and required medical equipment). Right now, there are no less than 11 supplement plans referred to as Medigap plans that fill any coverage holes required in Parts A and B. One of these is Plan F. It’s important to know that every organization offers each of the 11 supplement designs. In any case, in the event that they do offer less than 2 of them, they are required to offer Plans C and F. Plan F premiums normally cost amongst $65 and $295 every month. The premium will shift contingent upon the protection transporter and the state you live in.

 

Coverage Provided by F

 

The coverage required of Medigap coverage designs is mandated and regulated by the Centers for Medicaid and Medicare. Plan F additionally has a “high deductible” plan since it won’t pay for services secured by Medicare until the point when the plan user has paid an out-of-the-pocket of  at least $2,000. Once that deductible has been met, Plan F will cover 100% of the co-protections, co-pays, and deductibles of Parts An and B including hospice mind co-protection and additionally precaution services. In the event that you get the standard Plan F you will have no deductibles or coinsurance. When speaking to a protection professional it’s important to ensure which Plan F you are being quoted.

 

Correlations

 

There are just two supplements that cover any deductible cost of Part B, one of which is Medicare supplement Plan F. Furthermore, this is the main supplementary plan that covers most of the Part B charges. These charges normally accumulate if doctors have to charge more than what Medicare considers as crucial services. Other supplement designs will as a rule pay for costs that Medicare orders as suitable. At last, the excess sum that is allowable as indicated by Medicare is secured by F.

 

Is Plan F Right for You?

 

Medicare supplement Plan F in 2019 is seen as a standout amongst the most popular plans since it covers 100% of the holes encountered with Plans A and B meaning that it gives the best coverage compared to any of the Medigap insurance plans. For some people, the plan may appear somewhat confusing at first. In any case, if you answer a couple of questions, it won’t just clarify whether the plan is more thoroughly, you will have the capacity to choose whether or not it is ideal for you.

 

Fundamentally, in the event that you are somebody who is willing to pay for 100% insurance, at that point this plan is tailored to meet your personal needs. With Medicare supplement Plan F, your only costs will be your month to month premiums. For more data with respect to this supplement design, you can visit the official Medicare site or speak to a licensed protection professional.