Medicare is an ambitious federal health insurance plan in the United States, started in 1965 under the Social Security Act. The Act established a system of medical insurance coverage for those aged fifty to sixty-four who were not covered by social security benefits and were deemed uninsurable because of a pre-existing medical condition. Medicare was intended to be a primary medical plan for senior citizens to help them remain healthy, but as time went on, the program was expanded to cover children, teenagers, parents and anyone else considered a qualified beneficiary. This broadening of Medicare did not initially have an impact on the providers offering services, since the program is voluntary, with providers accepting the Medicare options that they feel are most beneficial to their individual clientele.
Today there are six million Medicare beneficiaries, including one million children. In addition, there are eight million supplemental coverage beneficiaries and fourteen million home health care recipients. There are also two million individuals over the age of sixty-five who are not covered by social security as a Medicare participant and make a special exception for themselves by purchasing supplemental coverage. The overall enrollment of Medicare beneficiaries has grown consistently over the years.
As more Medicare beneficiaries began to utilize inpatient acute care facilities and other health care facilities in recent years, the number of people receiving inpatient medical care grew at an increased rate, particularly in major cities. This growth was especially rapid in Maryland, which saw a fifteen percent increase in adult men from 2021 to 2021. Because many employers offer employee health benefit plans, including Medicare, it is very common for employees to be offered the opportunity to select their own Part D and Medicare Advantage Plans. The most popular Medicare Advantage Plans is known as Medicare Part D Blue Cross. These plans provide coverage for some of the more common needs and can be tailored to suit a particular individual’s medical needs.
For those individuals that would like to have a more comprehensive coverage package than the ones provided by their private health care provider, there is the possibility of enrolling in a Medicare Advantage Plan. A Medicare Advantage Plan will cover additional standard Medicare benefits, along with a wide range of additional, optional coverage options such as vision care, dental care and hearing aids. While Medicare Parts A and B cover some of the individuals medical needs, they usually do not cover very much in the way of coverage for other categories of health care. Medicare Part D is the more expensive of the two Medicare coverage programs but also covers a greater number of the typical health care services that Medicare does not provide. Part D also allows individuals to get services such as vision care through prescription drug plans.
Because Medicare is a growing program, it is anticipated that enrollment numbers will continue to rise in the next few years. Currently, according to the Kaiser Family Foundation, twenty-six million people enrolled in Medicare Parts A and B. Of these, nearly six million are enrolled in Medicare Part D, and another six million are enrolled in Medicare Advantage Plans. There are many reasons why people choose to enroll in Medicare Advantage Plans instead of traditional Medicare. Some of the most notable are the extra benefits provided by the Medicare Advantage Plans; the lower premium costs associated with these plans; and the opportunity to save money on prescription drug costs. Many individuals also choose to enroll in Medicare Advantage Plans because of the extra government benefits provided to them.
Another reason why some people choose to go with a Medicare Advantage Plan instead of Medicare is because they prefer to pay a higher deductible. The deductible that is paid by a person with a Medicare Advantage Plan is higher than the deductible that is paid by a person who chooses to go with a traditional Medicare health plan. What this means is that the person with the Medicare Advantage Plan is required to pay out of pocket expenses for his or her Medicare benefits, including the cost of his or her medications and any hospital stays. By paying a higher deductible, it is possible for a person to avoid paying out of pocket expenses for his or her Medicare benefits. When Medicare pays for most of a person’s health care needs, there is really nothing else a person can do but choose a Medicare Advantage plan over a traditional Medicare health plan.