Part B - Medical Expense
This part of Medicare covers most medical expenses not covered in Part A of the plan. This part of the plan is always voluntary and requires that the participant pay monthly premiums.


Covered Expenses

Excluded Expenses
Physicians and surgeons services Self administered drugs
Diagnostic tests Routine physical, eye, and foot exams
Radiology/pathology Routine dental care
Physical therapy Cosmetic surgery
Drugs that cannot be self administered Eyeglasses
Blood transfusions Custodial care
Outpatient services Immunizations - except Pnemococcal
Rental of medical equipment
Cancer screenings
Prosthetic devices
Home health care - when not covered under Part A


Part B Expenses Covered
Deductible $131 yearly
Co-Insurance 20% of the approved amount (Medicare 80%)

Home Health Care
Cost
$0 for care
20% for durable medical equipment

Clinical and Laboratory
Cost $0 for approved services

Mental Health
Cost 50% for outpatient

Blood
Cost
100% of the first 3 pints
20% for any additional pints

*All numbers are as of the 2007 plan documents

Part D - Prescription Drug
Prescription drug coverage is available to those covered under Medicare Part A and Part B through private insurance companies. Since this plan is offered by private companies the costs may vary. A covered individual pays a monthly premium and the costs illustrated below.
  • Deductible $265 Participant Pays
  • Next $2,400 Participant Pays a Co-payment and Co-insurance
  • Participant pays 100% until he /she pays $3,250 out of pocket
  • Participant Pays a co-insurance of 5%

There is assistance available to seniors with low incomes with Part D coverage. The assistance can include a premium waiver, deductible waiver, and/or reduced co-pay.

Medigap insurance - Medicare Supplement
This policy is designed to make up the difference between what the participant has to pay and what the Medicare policy pays. These policies will pay a portion, if not all, of the participant's deductibles and co-insurance associated with their Medicare policy.


Taxation of Premiums and Benefits

Related Articles
  1. Retirement

    Top 5 Costliest Health Issues Retirees Face

    The healthcare system today is murky, with plans changing what they cover. What are the costliest out-of-pocket or underestimated healthcare expenses that retirees need to watch out for?
  2. Retirement

    What Are the Different Parts of Medicare?

    At age 65, most people have to sign up for Medicare. Learn which of its four programs are mandatory – and which you can skip.
  3. Managing Wealth

    What Does Medicare Cover?

    Don't assume you're insured. Find out what you can expect from this healthcare program.
  4. Retirement

    Medicare Part D Is Changing How You Pay for Drugs

    As the price of prescription medication rises and the population ages, insurers are looking for ways to cut costs. That's where coinsurance comes in.
  5. Financial Advisor

    Filling In The Medicare Gaps

    Basic Medicare is not a perfect fit for everyone - sometimes, extra policies are required to suit a person's needs.
  6. Insurance

    Understanding the Basics of Medicare

    Understanding these Medicare basics will help you choose the coverage that is right for you.
  7. Insurance

    Medicare 101: Do You Need All 4 Parts?

    Medicare is the United States’ health insurance program for those over age 65. Medicare has four parts, but you might not need them all.
  8. Managing Wealth

    Planning for Healthcare

    Planning how to pay for healthcare during retirement is a must—and the earlier you do it, the better. Medicare often fall short, so here are your options.
  9. Financial Advisor

    Breaking Down Medicare Open Enrollment for Clients

    For financial advisors, open enrollment is an important opportunity to be of service to clients, especially when it comes to reviewing Medicare options.
  10. Insurance

    Medicare Enrollment: Everything You Need to Know

    It's important to enroll in Medicare properly to have healthcare coverage in retirement.
Frequently Asked Questions
  1. How do you calculate r-squared in Excel?

    Calculate R-squared in Microsoft Excel by creating two data ranges to correlate. Use the Correlation formula to correlate ...
  2. What is the Difference Between International Monetary Fund and the World Bank?

    Learn about the International Monetary Fund and the World Bank and how they are differentiated by their respective functions ...
  3. Where Did the Bull and Bear Market Get Their Names?

    The terms bull and bear are used to describe general actions and attitudes, or sentiment, either of an individual (bear and ...
  4. What's the difference between Google's GOOG and GOOGL stock tickers?

    Learn the difference between Google's GOOG and GOOGL ticker symbols. Splitting shares into classes prevents management from ...
Trading Center