What Are Some Common Medicare Supplement Insurance Terms?
Medicare is a federal health insurance coverage program administered by the Centers for Medicare and Medicaid Services(CMS) for persons 65 or older, persons of any age with kidney problems and disabled. Social Security Administration offices all over the country accept application, collect premiums and give out information regarding the Medicare program.
Hospital Insurance Protection
This program also referred to as Medicare Part A covers the cost of inpatient hospital care, post-hospital care, institutional and hospice care benefits. The program is mainly funded by Social Security payroll tax deductions and partly by the medicare beneficiaries through deductibles, premiums and co-insurances.
Medical Insurance Protection
Often called Medicare Part B, a voluntary health care program covers those expenses not covered by Part A, such as medical equipment, outpatient care, doctor's services, ambulance costs, physical therapy and much more. Approximately 75% of the program is financed by the federal contribution and the rest is paid by the premiums collected from the beneficiaries.
Medicare Advantage (Part C)
A contract between Centers for Medicare and Medicaid Services (CMS) and fee-for-service organizations where the beneficiaries have the option to receive benefits from either the Medicare program or Medicare advantage plan such as HMOs and PPOs.
Medicare Prescription Drug Insurance (Part D)
Approximately 95% of the prescription drug cost above the catastrophe coverage threshold is covered under this program that came into effect in 2003.
Open Enrollment Period
A date range where applications are accepted from persons 65 or older and allowed to select the required Medicare supplement insurance (Medigap) immediately following the enrollment in Medicare Part B.
Conditions or illness that were treated or diagnosed during the six month period before the Medicare supplement insurance policy came into effect.
An alternate to Medicare supplement insurance where the program limit Medigap benefits or pay partial expenses of services offered by certain health care professionals outside the network.