Medicare

• Part A is financed by taxes on employers and employees.
• Part A provides coverage for inpatient hospital care, hospice care, limited skilled nursing care, and home health care. Copays, co-insurance, and a deductible may apply to each of these services.
• Part A deductible will be charged each time there is a hospitalization, as long as there are 60 days between each episode.
  • You pay a deductible and no co-insurance for days 1-60 each benefit period.
  • You pay co-insurance for days 61-90 of each benefit period.
  • Once the deductible is paid, Medicare will pay a share of the covered health care expenses and you are responsible for a share of the covered services.

• Part B is financed by individual monthly premiums, which are usually deducted from a person’s Social Security check.
• Medicare will pay 80 percent of covered health care costs and you are responsible for the remaining 20 percent.
• Some preventive services are covered with no charge, including a yearly “wellness visit.”
• Medicare deductibles and co-insurance amounts are adjusted on an annual basis.

MA plans replace original Medicare by providing all of Part A and Part B coverage. MA plans must cover all of the services that original Medicare covers except for hospice care.

MA plans are offered by private insurance companies approved by the federal government and are sometimes referred to as “Part C.” It’s important to note that MA plans:

• May require the use of network providers.
• May offer different co-payments, co-insurance, and deductibles than original Medicare.
• May offer extra benefits, including vision, hearing, or dental coverage.
• May include prescription drug coverage, also known as a Part D plan. (Read on for more information about Medicare prescription drug coverage.)
• These plans are not Medicare Supplement policies even though the plans cover similar benefits. For this reason, individuals do not need a MA plan and Medicare Supplement plan at the same time.

MA plans are regulated under the authority of the Center for Medicare and Medicaid Services (CMS), a federal agency. The Department of Insurance and Financial Services (DIFS) does not have authority over MA plans; therefore, DIFS does not review or approve the contract language or the rates for MA plans. However, DIFS does license most of the health insurers that issue MA plans in Michigan.

Prescription drug coverage is a voluntary benefit available to everyone with Medicare and is offered by private insurance companies approved by the federal government. Health insurers offer a variety of Part D plan options, with different covered prescriptions and costs. Prior to purchasing a plan, it is important to verify that your prescriptions are covered under the plan and what your financial responsibility will be. Important features about Part D monthly premiums and other plan costs are: 

• Part D plans charge a monthly premium in addition to the Medicare Part B premium.
• MA plans offering Part D coverage may include a charge for the prescription drug coverage in the monthly premium.
• The amount you pay for Part D coverage may differ based on your income.
• Part D plans may have yearly deductibles that must be met before the plan begins to pay its share of covered medications.
• After the deductible has been met, the insured may be responsible for co-payments and co-insurance.

DIFS does not have authority over Medicare prescription drug plans; therefore, DIFS does not review or approve the contract language or the rates for MA plans. However, DIFS does license most of the health insurers that issue Medicare Part D plans in Michigan.

If you are covered under an employer group MA plan, Medicare Part D plan, or retiree health plan, any changes in the plan or coverage are determined by the employer.

Plan changes may only occur during open enrollment. It is important to know if your plan changed or if there are other plan options available.

Questions regarding plan changes may be directed to your employer’s human resources department or use the contact number provided on any written communication received.

Medicare’s annual open enrollment period is October 15 through December 7. During this time, you can select a new Medicare Advantage or Prescription Drug Plan (Part D) with coverage that will begin January 1. It is also a chance to review and compare your coverage with other available plans and enroll in a new plan.

During the open enrollment period you can:

• Buy a new Medicare Advantage plan if you are enrolled in Original Medicare (Parts A & B).
• Switch back to Original Medicare if you currently have a Medicare Advantage plan.
• Change to a new Medicare Advantage or Part D plan if you currently have a Medicare Advantage or Part D plan. 
• Buy or cancel a Part D plan if you have, or are signing up for, Original Medicare.

This open enrollment period cannot be used to enroll in Part A and/or Part B for the first time. For information about enrolling in Part A and/or Part B for the first time visit www.medicare.gov or call 800-633-4227.

Note: Each year, insurance companies can make changes to Medicare plans, including changes to the prescription drugs they cover. It is a good idea to review your current Medicare plan every year to make sure it still meets your needs.

For more information about Medicare’s annual open enrollment period, or assistance with your review and plan comparison, contact the Michigan Medicare/Medicaid Assistance Program (MMAP) at 800-803-7174 or visit their website at mmapinc.org.

In addition to Medicare’s Annual Open Enrollment Period, you can take advantage of a separate Medicare Advantage Open Enrollment Period from January 1 through March 31. Unlike the Medicare Annual Open Enrollment Period, this enrollment period is only for people who are currently enrolled in a Medicare Advantage plan and wish to make changes.

During this open enrollment period, if you already have a Medicare Advantage Plan you can do the following:

• Switch to another Medicare Advantage Plan, or
• Cancel your current Medicare Advantage Plan and return to Original Medicare. In this scenario, you will also be able to join a Medicare Part D Plan.

Also keep in mind that If you enrolled in a Medicare Advantage Plan during your Initial Enrollment Period, which is the sign up period when you first become eligible for Original Medicare, you can change to another Medicare Advantage Plan or go back to Original Medicare within the first 3 months that you have coverage.

Note: Each year, insurance companies can make changes to Medicare plans, including changes to the prescription drugs they cover.  It is a good idea to review your current Medicare plan every year to make sure it still meets your needs.

For more information about the Medicare Advantage open enrollment period, or assistance with your review and plan comparison, contact the Michigan Medicare/Medicaid Assistance Program (MMAP) at 800-803-7174 or visit their website at mmapinc.org.

For more information on the Medicare program, visit www.medicare.gov. A “Frequently Asked Questions” section is available and covers many senior health care topics.