Medicare Part A/B And Medigap (or Supplemental Insurance)

My parents are going to be eligible for Medicare in the next two years and I could not believe all the choices that they must make! or the sometimes ridiculous time frames. 

I'm helping them go through the different options and so I wanted to briefly discuss them today :)

Medicare Part A: 

It is equivalent to a "Major Medical/Indemnity" policy. It helps cover (Key words! since it is not covered 100%) your inpatient care in hospitals, critical access hospitals and skilled nursing facilities. It also covers hospice care and some home health care. It's free of charge for those that have worked more than 10 yrs in "medicare covered employment" (check with the Social Security administration for your individual status).

Medicare Part B: 

It's the one that helps cover your doctors’ services, outpatient hospital care, and some other medical services that Medicare Part A doesn’t cover, such as some of the services of physical and occupational therapists, and some home health care. Medicare Part B helps pay for these covered services and supplies when they are medically necessary.

IT IS NOT FREE or automatic. You must apply for it before you're eligible or it could be delayed up to 3 months!! 

The monthly Premium for Medicare Part B in 2009 is $96.40 

By the way... if you chose not to enroll in Medicare Part B when you first become eligible there's a 10%  penalty added to your Premium fee FOR LIFE for every 12 month period that you wait. 

Neither A or B covers prescription medication. That's a separate plan with a separate premium. 

Medigap (or Supplemental coverage) would help you pay for what Medicare A/B doesn't cover.... but it is also a separate Plan (Plans A through L) with an additional premium. 

Believe it or not the medicare website was most helpful with the original "information search". Here it is: 

http://www.medicare.gov/MedicareEligibility/home.asp?version=default&browser=Safari|2|Windows+Vista&language=English

However, I'm continuing the search since I would feel better hearing what other people that are actually using the particular plan have to say about it. 

A great deal of attention is given to costs... we're putting more emphasis on plan performance/ reputation of the companies. 

Cost Recap: Monthly Premium for Medicare Part B    $96.40 (plus any penalties)

      Monthly Premium for Medigap                    ???? (****)

      Monthly Premium for Prescription Meds   ???? (****)

**** depends on what plan you choose