Medicare is the federal health insurance program for persons age 65 and older as well as certain disabled individuals. In 1965, Medicare was enacted to provide a \u201csafety net\u201d of health-care coverage for qualifying individuals.<\/p>\n
Medicare is packaged in two major parts. Part A is hospital insurance protection. It covers hospitalization, some hospice care, and a limited amount of post-hospital skilled nursing and home health care. Part B, which is medical insurance, helps cover physicians\u2019 services, outpatient hospital care, physical therapy, diagnostic tests, and a variety of other services. More recently, Medicare added Part D, prescription drug coverage.<\/p>\n
At first glance, it appears that Uncle Sam has everything covered. But unfortunately, there are many limitations.<\/p>\n
Every time you go to the hospital, you have to pay a certain amount of your hospitalization costs, unless your visits are separated by fewer than 60 days. If that\u2019s the case, you pay the deductible only the first time. If you stay in the hospital longer than 60 days, you will be required to pay a copayment every day for days 61 through 90.<\/p>\n
You also have a lifetime reserve of 60 days that can be used in conjunction with more than one extended stay. These days also have an associated copayment. Medicare won\u2019t cover any stays longer than 90 days once you have depleted your 60-day reserve.<\/p>\n
Medicare will pay for the first 20 days of skilled nursing care, but only after you\u2019ve been in the hospital for three days. This means you\u2019ll have paid at least the deductible for that three-day stay. From the 21st day through the 100th day, Medicare will cover some of the costs of skilled nursing care, but you still have a copayment. After 100 days, Medicare will not pay for skilled nursing care, and you must bear the full cost. The 100 days are per benefit period.<\/p>\n
Medicare supplemental insurance, or \u201cMedigap,\u201d is designed to pick up where Medicare stops. As such, it usually pays the deductibles and copayments required by Medicare. Coverage will vary according to the benefits outlined in each specific policy.<\/p>\n
Medigap insurance may not pay for any additional procedures that aren\u2019t specifically addressed by Medicare. Most policies will only help to cover the deductibles and copayments imposed by Medicare.<\/p>\n
Medicare provides only limited coverage for skilled nursing care and pays for only up to 100 days of care following a three-day hospital stay. Medigap doesn\u2019t fill the gaps in this coverage.<\/p>\n
If you are concerned about meeting your potential long-term-care needs, you should look into additional insurance to help fill in the gaps. In many cases, it may be best to consider purchasing a private long-term-care insurance policy to help protect against these potentially devastating costs.<\/p>\n
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The information in this newsletter is not intended as tax, legal, investment, or retirement advice or recommendations, and it may not be relied on for the \u00adpurpose of \u00adavoiding any \u00adfederal tax penalties. You are encouraged to seek guidance from an independent tax or legal professional. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the \u00adpurchase or sale of any security. This material was written and prepared by Broadridge Advisor Solutions. \u00a9 2025 Broadridge Financial Solutions, Inc.<\/p>\n","protected":false},"featured_media":918,"template":"","meta":{"_acf_changed":false},"article-category":[20],"class_list":["post-917","articles","type-articles","status-publish","has-post-thumbnail","hentry","article-category-risk-management"],"acf":[],"yoast_head":"\n