Medicare was added to the Social Security Act of 1935 during the mid-1960s. However, due to excessive costs, inefficient management and other factors, the long-term viability of this program has been in jeopardy for quite a while. However, in the post-Obamacare era, Medicare now has an additional obstacle to overcome, specifically in the way that medical fees will be paid. If the change isn't successful, it could spell disaster for what has essentially become a medical lifeline for millions of Americans age 65 and older.
As an advisor, even if you don't sell health insurance, it is incumbent upon you to obtain at least a modicum of knowledge on Medicare, so you can advise your clients on this all-important issue. In this post, we'll discuss Medicare's eligibility requirements, its components, premiums and coverage, and the change mandated under the Affordable Care Act that could cause a problem. If you have clients who are currently covered under Medicare, or will be in the future, this is information you definitely need to know.
Medicare Eligibility Requirements
To be eligible for Medicare you must meet the following criteria:
1) You must be a U.S. citizen or permanent legal resident; and
2) You or your spouse must have worked and paid into Medicare for a minimum of 10 years; or
3) You or your spouse is a government employee who has not paid into Social Security, but has paid Medicare payroll taxes while you were working.
Medicare Components & Premiums
Medicare is divided into four parts. Here is a brief description of each.
