The program of Medicare was created by the Congress of the United States of America in the year of 1965. Originally, it was made up of the Medicare A and B. A is the part that covers hospital expenses and B is responsible for routine health procedures.
It is important to note that Medicare was never created with the intention of being the only method of medical insurance. With this program, you can go with any doctor who accepts Medicare.
Brief Information about the Two Original Parts of Medicare
The benefits of original Medicare is divided into two parts as A and B.
Part A for Hospital Insurance Cover
It is free and does not require monthly payments for the people who qualify for Medicare covered services which include the following;
- Skilled Nursing Care
- Home Health Care
- Hospice Care for people with a terminal condition
Part B is a voluntary option and is a health insurance
It costs around $100 per month that are deducted directly from the monthly Social Security check. Generally, it pays 80% of the medical expenses and outpatient care after the annual Part B deductible that around $155.
Some of items which Medicare does not cover are as follows;
- Deductibles and coinsurance or co-payments
- Routine eye care
- Routine foot care
- Orthopedic shoes
- Annual physical exams
- Certain diabetic products
- Hearing aids and examination to fit a hearing aid
- Health care while traveling outside the US
Keep in mind that although Medicare Part B is optional, it charges a lifetime penalty for each month you choose not to take Part B. The financial penalty is 10% of the monthly Part B payment. For instance, if you decide not to take Part B and if you spend one month from the first day that you are eligible, the Medicare will charge you $110.50 if you applied and were accepted as a member along with 10% of your monthly Part B payment. For those who applied and were accepted to Medicare will pay a total of $122 instead of your $110.50 the first month you decide not to participate in Part B.
Remember that this payment is for life and it will continue to increase each month that you do not participate. Also remember that you will never be able to return to your normal rate and if you do not act as quickly as possible, you run the risk of spending a very large portion of your retirement check on it.