Why there are not any Medicare Insurance Companies.
Medicare is not a company. It is a health care program administered by the federal government. As a social health insurance program, it guarantees health care to those 65 and older as well as younger people with disabilities. Where a company or business is out to make a profit while avoiding any risks, Medicare instead spreads the risk across society in order to protect everyones health.
On reaching age 65 you become eligible for enrollment in Medicare. Medicare has two parts. Part A covers hospitalization and does not cost the recipient anything. Part B covers most out-patient services and has a monthly premium, taken out of your Social Security benefits. Part B premiums can vary, depending on your adjusted gross income from two years previously. In 2012, the basic premium is $99.00.
When referring to Medicare Insurance companies, in the context of a business, people are referring to Medicare supplement insurance companies. These insurance plans are governed by the federal government and sold by private insurance companies. The supplemental insurance plans are often called Medigap plans.
There are many insurance companies that sell Medigap plans. Some of the well known ones include Humana, AARP, Mutual of Omaha and Blue Cross-Blue Shield. These companies are competing for your dollars, so it’s advisable you decide which supplemental plan you want before buying.
All ten of the Medigap insurance plans are the same. Plan A with Aetna is the same plan Humana sells. This is because the federal government requires the plans be standardized. Insurance companies can charge different premiums. in order to make a profit.