Many health insurance plans have what is called an “open enrollment” period. It is the time when people can make changes to their health plans. The end of the open enrollment period for Medicare is coming up fast!
Medicare is a public form of health insurance. It covers people who are age 65 or older. It also covers people (of any age) who have End Stage Renal Disease. Medicare also covers people who are younger than age 65 and who have certain types of disabilities.
There are four different parts to Medicare. Part A is “Hospital Insurance”. It covers inpatient hospital stays, care in a skilled nursing facility, hospice care, and some home health care. People who turn 65 will automatically be enrolled in Part A.
Part B is “Medical Insurance”. It covers doctor’s visits, outpatient care, medical supplies, and preventative services. Some people have to sign up for Part B, (ideally, at the time that they become eligible for Part A). Some people will get Part B automatically at the same time that they become eligible for Part A.
Part C is the “Medicare Advantage Plans”. These plans come from private insurance companies. Medicare Advantage Plans are supposed to provide all Part A and Part B benefits. In other words, you can either have Part A and Part B, or you can have Part C. Some Medicare Advantage Plans will cover prescription drugs, (but not all of them will).
Part D is “Prescription drug coverage”. You have to apply for this. It will not be given to you automatically. Part D adds coverage for prescription medication to your Part A and Part B plan or to your Part C plan.
This year, the open enrollment period for Medicare plans will end on December 7, 2012. Medicare beneficiaries have until December 7th to change Medicare Advantage plans or to shift between Medicare Advantage and Traditional Medicare.
To get started, you can visit Medicare.gov and take advantage of their user friendly tool that will help you to compare different plans and benefits. There is a tool that will show you what parts of Medicare you are currently enrolled in.
The best time to sign up for Medicare Part A and Part B is when you first become eligible for it. If you wait, you could end up paying a penalty. For example, let’s say you were automatically signed up for Part A. You didn’t choose to sign up for Part B at that time. If you decide, later on, that you do want Part B coverage, you could end up paying more for it than you would have if you signed up for it immediately.
Image by Amy the Nurse on Flickr