What Is Medicare?

For starters, it is a Federal Health Insurance program that came about in 1965 as a result of a Bill signed by then President Lyndon Johnson to go with Social Security. The original program provided coverage for the Hospital (Part A) and Medical (Part B) which is why these two parts are referred to as “Original Medicare.” In addition to those individuals 65 and above, it has been expanded over time to include disabled people and people with end stage renal disease (ESRD), that may require a transplant or dialysis. For those individuals signing up for Medicare, “Original Medicare” provides the following coverages.

Medicare Part A- Hospital-

Medicare Part A coverage covers an “Admitted Hospital Stay.” Medicare will cover semi private rooms, drugs, nursing, meals and Hospital services associated with the stay. Medicare does not cover a private room, TV or phone(if not included), private duty nursing and personal care items. Hospital Part A also covers time in a Skilled Nursing Facility (SNF). The SNF will be available after a Hospital related condition following a 3 day Hospital Stay.
Skilled Nursing services include-
Meals, Skilled Nursing Care, Semi Private Room, Physical, Speech, Occupational Therapy, Medications and Medical Supplies, Ambulance and Dietary Counseling.

Medicare Part A Costs-

Most individuals when nearing retirement age that have worked for more than 10 years or 40 Quarters will be entitled to Free Medicare Part A. If you worked less than 40 Quarters you will pay a monthly premium for your Part A Hospital coverage. For example in 2025-
-If you worked between 30 to 39 Quarters then your Part A premium will be $285.00 per month.
-If you worked 29 Quarters or less your Part A premium will be $518.00 per month.  
Hospital Part A offers coverage for an Inpatient Hospital stay and time spent in a Skilled Nursing Facility following an Inpatient Hospital stay. An Inpatient Hospital stay is broken down into 60 day benefit periods. If you have to return to the Hospital for the same condition within 60 days the cost share will not apply. The costs are as follows: 
Days 1- 60- Individuals will be responsible for a $1676 deductible.
Days 61- 90- $419.00  Per Day
Days 91- 150- $838.00 Per Day (Utilizing the 60 day Lifetime Allowance)
Days 151 and beyond- All Costs
Skilled Nursing Facility-
Following an Inpatient Hospital stay Medicare will cover 20 days. The costs are as follows:
Days 1- 20- $0 per day
Days 21- 100- $209.50 per day
Days 101 and beyond- All costs

Medicare Part B- Medical

Medicare Part B covers services outside of an admitted Hospital stay that are both “Preventative” and “Medically Necessary.” Medically Necessary services include services and/or supplies needed to treat a condition or illness. Preventative services are to prevent illnesses and conditions at no cost to the Medicare beneficiary from a provider that accepts Medicare. Medicare does not cover Medications. Prescriptions are available through a Part D Prescription Drug plan offered by a private insurance carrier. Medicare does cover injectable medications administered in a Doctor’s office or Facility.

Medical Part B Costs

Part B Monthly Premium- The Base Monthly Premium for 2025 is $185.00 depending upon income. Some will pay a higher amount-
Income Related Monthly Adjustment Amount (IRMAA) – Some individuals will pay a higher monthly premium due to a higher annual income. For 2024 the base annual income for a single filing individual is $106,000 or less and $212,000 for couples filing jointly. Any amounts above will result in a higher monthly premium and an increase in their Part D monthly premium. Social Security looks back 2 years so for some, their income is not being correctly represented resulting in a higher monthly premium based on wrong information. If your income has gone down you are able to get your monthly premium lowered by filing a “Life Changing EventForm.”Please see the Income Chart Below. You can also download the adjustment form from our documents library, there is a link below as well.

 

Additionally, Medicare Beneficiaries will have cost sharing when using Medicare Part B services. They are as follows:  
Part B Deductible– $257.00. Individuals will be responsible for the first $257.00 of their Medical coverage. This is an annual deductible and only paid once.
Part B Coinsurance– 20%- Once the deductible is satisfied Medicare will pay 80% of all approved amounts and the Medicare Beneficiary will be responsible for 20%.

Medicare Health Insurance-

Another development of the years is the availability of insurance coverage to help cover the costs associated with Original Medicare. The first to come along were Medicare Supplement plans, known as Medigap. These were designed to help pay your Medicare cost share and usually come with a premium and a separate Part D Drug plan must be added. The next plan to help with these costs is Medicare Advantage, or Medicare Part C. These are more of the traditional type of plans, HMO’s, PPO’s etc. and offer additional items not offered by Original Medicare such as Dental and Vision.

IRMAA ADJUSTMENT FORM

Frequently Asked Questions 

 

How Do They Calculate The Part B IRMAA Adjustment?
They Look A Income From 2 Years Prior.
You Can File A Life Changing Event Form With Social Security And Get Your Part B premium Lowered.
No, because It Is an Annual Deductible It Is Only Paid Once.

Mike Miligi- Owner

For over 10 years, Mike has been assisting Seniors and other Medicare-eligible individuals in understanding the ins and outs of Medicare and Medicare Health Insurance options, including Medicare Advantage Plans(Part C), Medicare Supplement Plans(Medigap), Prescription Drug Plans(PartD), and Dental and Vision programs.
Mike is Licensed in seven States and Certified with 11 Insurance Carriers. He has helped thousands of individuals decide on the best course of action for their particular Health Insurance needs. Because Mike is an Independent Medicare Health Insurance Broker, he works for the client, not the Insurance Carriers, and is able to provide his clients with accurate and unbiased Health Insurance options.
Mike recertifies with CMS(The Centers for Medicare and Medicaid Services) annually, regularly completes Continuing Education Courses required by individual State Insurance Departments, and keeps abreast of industry trends and standards to offer his clients the most up-to-date information.

Choosing the Right Medicare Coverage

Selecting the best Medicare coverage depends on factors like your healthcare needs, budget, and preferred providers. You can choose between:
  • Original Medicare (Parts A & B): Allows you to see any doctor or
    hospital that accepts Medicare but does not include prescription drug
    coverage (Part D) or additional benefits.
  • Medicare Advantage (Part C): Offers bundled coverage with
    potential extra benefits but may require using a network of providers.
  • Medigap (Medicare Supplement Insurance): Helps cover
    out-of-pocket costs not covered by Original Medicare, such as
    copayments and deductibles.

Key Medicare Enrollment Periods

It is crucial to enroll in Medicare at the right time to avoid penalties and ensure continuous coverage:
  • Initial Enrollment Period (IEP): A seven-month window starting
    three months before your 65th birthday month.
  • General Enrollment Period (GEP): From January 1 to March 31
    each year for those who missed their IEP.
  • Annual Election Period (AEP): From October 15 to December 7,
    allowing you to switch or enroll in Medicare Advantage and Part D
    plans.
  • Open Enrollment Period(OEP): From January 1 to March 31 for
    those who missed AEP and want to make certain changes.
  • Special Enrollment Period(SEP): Can be used anytime during the
    calendar year for those that meet certain criteria such as moving to a
    new service area.

Finding Help with Medicare

Understanding Medicare can be complex, but you don’t have to do it alone. Licensed Insurance Brokers, Medicare.gov, and state health assistance programs can provide guidance tailored to your specific needs.
By taking the time to explore your Medicare options, you can make informed decisions that ensure you receive the healthcare coverage that best suits your lifestyle and budget.
Do I have to sign up for Medicare?
It depends upon your current coverage. If you are employed and your employer has over 20 employees then you can delay signing up for Medicare and avoid penalties.
No, You will have to enroll in a stand alone Part D plan or a Medicare Advantage Plan(Part C) to get coverage.
There are no networks with Medicare and most doctors and hospitals accept it. However, Medicare does not cover 100% of services so a Medicare Supplement or Medicare Advantage plans is advisable.

Mike Miligi- Owner

For over 10 years, Mike has been assisting Seniors and other Medicare-eligible individuals in understanding the ins and outs of Medicare and Medicare Health Insurance options, including Medicare Advantage Plans(Part C), Medicare Supplement Plans(Medigap), Prescription Drug Plans(PartD), and Dental and Vision programs.
Mike is Licensed in seven States and Certified with 11 Insurance Carriers. He has helped thousands of individuals decide on the best course of action for their particular Health Insurance needs. Because Mike is an Independent Medicare Health Insurance Broker, he works for the client, not the Insurance Carriers, and is able to provide his clients with accurate and unbiased Health Insurance options.
Mike recertifies with CMS(The Centers for Medicare and Medicaid Services) annually, regularly completes Continuing Education Courses required by individual State Insurance Departments, and keeps abreast of industry trends and standards to offer his clients the most up-to-date information.
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