What is Medicare Part A?

What does Medicare Part A cover? When you think of retirement, you begin thinking about retirement funds and healthcare. When you are older than 65, when you think of healthcare, you think of Medicare. But do you really now what it’s used for? Who pays for it? When are you eligible? These are all questions we get when our clients are planning.

Let’s answer the basic question first, “What is Medicare?” In 1965, Medicare health insurance was designed as a broad program of health insurance to meet hospital (also known as Part A), medical (also known as part B), and other health costs for individuals 65 and older or any person receiving disability benefits from Social Security or the Railroad Retirement Board or those having End Stage Renal Disease (ESRD).  The US Department of Health and Human Services manages Medicare and is strictly a federal program. Although the federal government establishes general guidelines for Medicaid, the Medicaid program (which involves a combination of state and federal funds) is administered by the states.

What does Part A cover? All Medicare eligible individuals are automatically enrolled in Part A. Part A covers inpatient care received in a skilled nursing facility or hospital. This includes a semi-private room, meals, skilled nursing and rehabilitative services, and other services and supplies needed. Even some Home Health Care services are covered by Part A; those services include medically necessary part-time or intermittent skilled nursing care, physical therapy, speech-language pathology, and continuing occupational therapy. Hospice care benefits are available for people with a terminal illness who are expected to live six months or less.

Who Pays for Medicare? An individual, age 65 or older will generally be entitled to Medicare if he or she has worked at least 10 years in Medicare-covered employment, (paid the applicable FICA tax). A person age 65 or older may also be eligible for Medicare if his or her spouse worked at least 10 years in Medicare-covered employment. Typically, coverage begins on the first day of the month in which the individual attains age 65. The date of entitlement is, however, dependent on the month of enrollment.

When are you eligible? Typically, coverage begins on the first day of the month in which the individual attains age 65. The date of entitlement is, however, dependent on the month of enrollment.

Our clients typically have tons of questions when it comes to Medicare and we are here to help you navigate from your insurance to a plan today. Call Advanced Insurance Concepts today and Jim Rooney will help you navigate a plan for the perfect set-up for you.