Medicare Hospital Indemnity Coverage

Medicare Hospital Indemnity coverage is a supplemental insurance that provides a cash benefit to help cover expenses related to a hospital stay, such as copays, deductibles, and other out-of-pocket costs. It's not a replacement for Medicare, but rather a way to supplement existing coverage like Original Medicare or Medicare Advantage plans. The benefit is typically paid as a daily cash amount for each day spent in the hospital, and can be used for any expenses related to the hospital stay or even other living expenses. 

What is IRMAA?

In Medicare, IRMAA stands for Income-Related Monthly Adjustment Amount. It's an additional surcharge on Medicare Part B and Part D premiums for beneficiaries whose income exceeds certain thresholds. This surcharge is calculated based on the beneficiary's Modified Adjusted Gross Income (MAGI) from two years prior.

• Why it exists:
  IRMAA helps ensure the financial stability of Medicare by requiring higher-income beneficiaries to contribute a greater portion of their Medicare costs.

• Who it applies to:
  IRMAA applies to Original Medicare and Medicare Advantage enrollees.

Key Features of Medicare Supplement Insurance Plans

Coverage:
Medigap policies offer standardized coverage, meaning policies with the same letter offer the same basic benefits, regardless of the insurance company.

Standardization:
There are different types of plans (A through N) with varying benefits.

Cost:
Medigap premiums vary based on the specific plan and the insurance company offering it.

Additional Benefits:
Some plans may cover additional benefits, such as emergency medical care outside the US, or may include benefits like vision, dental, or hearing coverage.

Eligibility:
You must be enrolled in Original Medicare Part A and Part B to be eligible for Medigap.

Open Enrollment:
You have a Medigap Open Enrollment period, which starts when you're 65 or older and enrolled in Medicare Part B. During this period, you can buy any Medigap policy without being denied coverage due to pre-existing conditions.

The ABCD's of Medicare

What are the parts of Medicare?

Part A – Hospital Insurance Helps cover:

• Inpatient care in hospitals

• Skilled nursing facility care

• Hospice care

• Home health care

Part B – Medical Insurance Helps cover:

• Services from doctors and other health care providers

• Outpatient care

• Home health care

• Durable medical equipment (like wheelchairs, walkers, hospital beds, and other equipment)

• Many preventive services (like screenings, shots or vaccines, and yearly “Wellness” visits)

Part C - Medicare Advantage

Medicare Advantage plans are a type of Medicare health plan offered by private companies that are approved by Medicare. It provides the same coverage as Original Medicare (Part A and Part B) and may include additional benefits like vision, hearing, and dental coverage, as well as prescription drug coverage (Part D).

Part D – Drug Coverage

Helps cover the cost of prescription drugs (including many recommended shots or vaccines). Plans that offer Medicare drug coverage (Part D) are run by private insurance companies that follow rules set by Medicare.

How Does Medicare Work?

Eligibility for Medicare

To sign up for Medicare Parts A, B, and supplemental coverage (known as Supplement, Advantage, or Prescription Drug Plans), most people will have an Initial Enrollment Period which is a 7 month period around the time they turn age 65. This period begins 3 months before the month you turn 65, includes the month you turn 65, and ends 3 months after the month you turn 65.

Once your Initial Enrollment Period is over, if you wish to change or purchase Advantage and Supplement Plans, you must act during the open enrollment period.

MISS THE DEADLINE? To enroll for Medicare outside of the open enrollment period, you will need a qualifying event to be eligible.