Medicare insurance coverage changes are possible as healthcare and insurance laws and policies continue to evolve. The Medicare program, which provides healthcare coverage for seniors and individuals with disabilities, is continually reviewed and updated to ensure that it meets the changing needs of beneficiaries. This can lead to changes in coverage, costs, and eligibility requirements. For example, in recent years, there have been proposals to expand coverage for certain services such as dental, vision, and hearing care.
Additionally, changes in drug coverage under Medicare Part D have also been implemented to help control the rising cost of prescription drugs. Beneficiaries should stay informed about changes to their Medicare coverage, as well as any other updates to healthcare laws, to ensure they have the coverage they need to meet their healthcare needs. In order to do so, keep reading as we will guide you through the process of changing your Medicare Coverage.
Medicare Coverage
Medicare is a federal health insurance program that provides coverage to eligible individuals who are 65 or older, people with certain disabilities, and people with End-Stage Renal Disease. Medicare coverage consists of four parts:
Part A (Hospital Insurance)
Medicare Part A, also known as Hospital Insurance, is one of four parts of the Medicare program. It provides coverage for hospital stays, including inpatient care in a hospital, skilled nursing facility care, and some home health care services. Most people who are eligible for Medicare do not have to pay a premium for Part A coverage, as long as they or their spouse have paid into the Medicare system through payroll taxes for at least 10 years. There may be deductibles and coinsurance for certain services under Part A, but the amount owed depends on the specific service and the length of stay.
Part B (Medical Insurance)
Medicare Part B, also known as Medical Insurance, is one of the four parts of the Medicare program. It helps cover medically necessary services and supplies that are not covered under Part A. Some of the specific services covered by Part B include doctor visits, outpatient care (including diagnostic tests and other medical services), preventive services (such as annual wellness visits, flu shots, and certain cancer screenings), durable medical equipment (such as power wheelchairs and oxygen equipment), and mental health services (including partial hospitalization and outpatient counseling services).
Most people who are eligible for Medicare pay a monthly premium for Part B coverage. In addition to the premium, there may also be deductibles, coinsurance, and copays for certain services. Part B coverage is optional, but individuals who do not enroll when first eligible may face a late-enrollment penalty.
Part C (Medicare Advantage)
Medicare Part C, also known as Medicare Advantage, is an alternative to Original Medicare (Parts A and B) that is offered by private insurance companies that are approved by Medicare. Medicare Advantage plans provide the same benefits as Original Medicare, but with additional benefits and features. Some of these additional benefits can include:
- Coverage for services not covered by Original Medicare, such as routine dental and vision care
- Lower out-of-pocket costs, including lower deductibles, coinsurance, and copays
- Limits on total out-of-pocket spending, providing a safety net against high medical costs
- Coordinated care, with all benefits and services provided through a single plan
Medicare Advantage plans have a network of healthcare providers and may require the use of network providers for certain services. They also have specific rules for services, such as prior authorization requirements and limitations on out-of-network services. Enrollment in a Medicare Advantage plan is optional, and individuals who choose to enroll in a plan will typically still pay the monthly Part B premium.
Part D (Prescription Drug Coverage)
Medicare Part D is a federal program that helps cover the cost of prescription drugs for Medicare beneficiaries. It is offered through private insurance companies that are approved by Medicare, and individuals can enroll in a Part D plan either as a stand-alone prescription drug plan or as part of a Medicare Advantage plan that includes drug coverage.
Part D plans have a list of covered drugs, known as a formulary, and the specific drugs covered and the cost-sharing for each drug will vary depending on the plan. Part D plans also have a coverage gap, also known as the “donut hole,” where beneficiaries may have to pay a larger share of their drug costs. However, the coverage gap has been gradually closing over the years, and individuals with high drug costs may receive additional assistance to help cover their costs.
Enrollment in a Part D plan is optional, but individuals who choose not to enroll when first eligible may face a late-enrollment penalty.
Overall, Medicare provides a comprehensive set of benefits designed to help eligible individuals meet their healthcare needs. Finally, it is up to potential Medicare beneficiaries to get to know themselves with their needs and find coverage that personally fits them best.
Steps to Changing Your Medicare Coverage
Step 1: Determine your need for change
Before making any changes to your Medicare coverage, it’s important to review your healthcare needs and determine why you want to make a change.
Step 2: Know the enrollment periods
There are specific times of the year when you can change your Medicare coverage. The Annual Enrollment Period (AEP) is from October 15 to December 7 each year, and the Medicare Advantage Open Enrollment Period (OEP) is from January 1 to March 31 each year.
Step 3: Review your options
You have several options for changing your Medicare coverage, including enrolling in a Medicare Advantage plan, switching from one Medicare Advantage plan to another, switching from a Medicare Advantage plan back to Original Medicare, or enrolling in or changing a Medicare Prescription Drug Plan (Part D).
Step 4: Compare costs and benefits
Carefully review the costs and benefits of each option to determine which one is right for you.
Step 5: Enroll in a new plan
Once you’ve decided on a new plan, you can enroll either by contacting the plan directly, using the Medicare Plan Finder tool on the Medicare website, or by working with a Medicare counselor.
Step 6: Confirm your enrollment
After enrolling, it’s important to confirm that your enrollment has been processed and that you have the coverage you need.
Step 7: Notify your providers
If you’ve switched to a new plan, you’ll need to notify your healthcare providers to make sure they accept your new insurance.
Final Thoughts
Medicare coverage is constantly evolving and changing, with new options and benefits becoming available over time. The four parts of Medicare (A, B, C, and D) provide different types of coverage, and individuals can choose the coverage that best meets their needs. With a range of options available, including Original Medicare, Medicare Advantage, and prescription drug plans, Medicare beneficiaries have access to a variety of resources to help meet their healthcare needs.
However, changes in legislation, new technologies, and advances in medical care may lead to ongoing changes in Medicare coverage. This is why it would be wise to continuously have in mind that you should stay informed about your healthcare options and periodically re-evaluate your coverage to ensure it continues to meet your needs.
