A concern expressed each year by many of our clients is, “Will Medicare premiums be going up?”

The House will vote on a bill today whether or not to eliminate the Part B premium increase for 2010. Stephen Ohlemacher wrote yesterday in an AP story:

“With no Social Security COLA, the vast majority of Medicare recipients already are exempt from premium increases for Part B, which provides coverage for doctor’s visits. However, a small group of seniors would face increases, from $96.40 a month this year to a projected $104.20 a month in 2010.”

A related story from WXOW suggests that 1 in 5 seniors in Madison WI, depend completely upon Social Security payments for their livelihood.

It remains to be seen how the House will move on this, but every American politician with a pulse knows that the future of their political career will be heavily dependent upon how we treat our aging population.

Original Medicare is a health insurance plan that is sponsored by and run by the federal government. The reason it is often called “original” medicare, is that it refers to the Medicare insurance plan without any other supporting plans, such as one might receive with Medicare Advantage.

You can have Original Medicare as a “stand-alone” plan, or you may have it with an optional Medicare Supplement Plan (or Medigap). You may also have the government plan with Part D, a prescription drug plan, or without it. You may not, under any circumstances, have Original Medicare along with a Medicare Advantage plan (such as an HMO).

When you qualify for Medicare, you get to choose how you receive your health and prescription drug coverage. Following are a brief description of your coverage choices.

Original Medicare

• Run by the Federal government
• Provides you Part A and Part B coverage
• You can join a Medicare Prescription Drug Plan to add coverage
• You can buy a Medigap (Medicare Supplement Plan sold by private insurance companies) to help fill the gaps in Part A and Part B coverage (like coinsurance, copayments, and deductibles.

Medicare Advantage Plans (like an HMO or PPO)

• Run by private insurance companies approved by Medicare.
• Provide your Part A and Part B coverage, but can charge different amounts for certain services. May offer extra coverage and prescription drug coverage for an extra cost. Costs for items and services vary by plan.
• If you want drug coverage, you must get it through your plan (in most cases).
• You don’t need a Medigap policy.

Other Medicare Health Plans

• Plans that aren’t Medicare Advantage Plans but are still part of Medicare.
• Include Medicare Cost Plans, Demonstration/Pilot Programs, and Programs of All Inclusive Care for the Elderly (PACE).
• Some plans provide Part A and Part B coverage, and some also provide prescription drug coverage (Part D).

If you have other health and/or prescription drug coverage from a former or current employer or union, you may have other coverage choices. This coverage may affect which Medicare coverage choice is best for you.

Source: 2009 Choosing a Medigap Policy. A Guide to Health Insurance for People with Medicare