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I have no idea if medical expenses are part of the equation. I know Medicare is a entitlement, but not sure if Medicare always covers all medical expenses.
A. Medicare Part A covers inpatient hospital bills minus a $1,676 deductable this is your standard free insurance at age 65
B. Optional Medicare Part B will pick up all other bills, outpatient hospitals, tests, doctor bills etc ...That has a $257 deductible and pays 80% of everything, You have to pay 20% of everything with no limit at all in place.
Cost for this optional plan is $185 a month for individuals with a modified income of less than $106,000 a year. Premuims are higher for higher incomes.
SO the above is pretty much what you get out of the box unless at age 65 UNLESS YOU tell Medicare you do not want Part B, then they will not take $185 a month from you. With the above you are responsible for 20% of all outpatient and doctor and testing bills. That can really add up, there is no out of pocket maximum.
C. The above does not include prescription drug coverage except for some treatments administered in hospital (some chemo etc in hospital) so you do have to purchase Part D if you want drug coverage. Most plans under $70 a month, some even free or just a few dollars. You REALLY need Part D drug coverage. (keep in mind, if you do not select drug coverage and do so later on, you will for the rest of your life pay a higher penalty premium)
Im on a 6 month regimen of a drug used to treat prostate cancer, it is prostate cancer specific. My Part D is paying $3,300+ a month for one $100+ pill a day. 6 month cost to my Part D insurer is $18,000 to $19,000
My cost looks like it is going to come in less than $2000 or possible I could hit the $2000 max out of pocket for it.
Im only entering my 3rd month, will know more. All I know is my insurer this month paid $3,314.83 for a month supply of pills taken once a day and I am taking them for 6 months. I paid $90 for the month.
All these insurance plans have to follow what medicare dictates. The drug I am taking is a new one and only in the last couple years, if that long Medicare approved it for just prostate cancer.
At a min you need all the above and still you would be responsible for 20% of all out of hospital health care with no maximum limit
D. Then comes supplemental medigap plans, Most popular are Part G and N. Will cost you at the outset an additional $100 to $150 a month. The plans pay for everything Medicare Part A and Part B do not pay. SO you pretty much never have a significant bill. The costs for these plans do go up as you get older but it's a good deal.
E. Last but not least is the all encompassing Medicare Advantage Plans. Which in most cases covers all the above and then even include extras. These plans must still cover everything Medicare dictates. The cost in many cases is no more than the $185 Part B coverage. Meaning you do not pay extra, most include drugs. .
HOWEVER you do have co-pays for everything yet the plans do have out of pocket limits which have been rising. One has to be careful, they can vary wildly but Medicare dictates how much these private plans can set the maximum. The maximums are starting to get high however you have to be REALLY sick to hit the ceiling for many. Out of pocket max depending where you live and the plan can be as low as $3,500 or as high as $10,000
Also these plans do require in many cases you stay in their networks. Some people make a big deal out of that, yet company health care before retiring works much the same way. It can be unsettling though. Health Networks have been battling with these plans. Most times works out.
Finally, research, research, research at
http://medicare.gov and sure, talk to one of those services that advertise advice to learn more.
DO not take anyones word for anything, including me and my posts or anyone else until you confirm on the Medicare Site or with a licensed Medicare advisor.