The Benefits and Woes of the Medicare Program

Medicare started in 1965 after it was legislated as a Social Security program amendment. The Center for Medicare and Medicaid Services (The CMS) administers it for the Human Services department.

More than 43 million American citizens receive their medical insurance coverage from Medicare. A lot of them would otherwise not have medical insurance.

Even if the Medicare program is not quite perfect, millions of people rely on it to be sure of basic insurance at a relatively low cost. It doesn't offer much in terms of preventive care. Dental care, vision care or an annual physical are not part of the Medicare program.

Payroll tax deductions of an amount of 2.9% of the wages pay the money Medicare works from. Half paid by the employee and the other half by the employer.

Medicare is divided in four pieces:

Part A - Hospital coverage

Part B - Medical insurance

Part C - Supplemental coverage

Part D - Prescription insurance

An added cost is required for part C and part D. these are not required. Part A and B don't pay the full costs of medical care. Usually there is a premium, co-pay and a deductible. There is Medicaid for those who qualify. It is there to assist paying part of the bill for people with low-income.

There have been made predictions that the system will run out of money around 2018. This is caused by more people retiring and becoming eligible for Medicare. The costs of Health care are on the rise, adding to the cost of Medicare. Fraud has been a major problem for the program as well.

A viable solution to save the system is yet to be proposed, and much needed for the many people around the country that make use of the program.

Jeff Surean understands the importance of good health. He covers insurance and health care related issues on his blog World Insurance [http://www.worldinsurancesite.com/]. He tries to help people save money with their Health Savings Account [http://www.worldinsurancesite.com/2010/02/save-money-with-your-health-savings-account/] and get the most out of their insurance.

How the Mandatory Medicare Secondary Payer - MSP - Rules Work For a Group Health Plan - GHP

The Centers for Medicare & Medicaid Services (CMS) seeks to collect various data from the applicable Responsible Reporting Entities (RREs) for purposes of implementing the Mandatory Medicare Secondary Payer reporting requirements of Section 111 of the MMSEA. This information will be used to ensure that Medicare makes payment in the proper order and/or takes necessary recovery actions.

Under the MSP rules Medicare does not have primary responsibility for paying the medical expenses of a Medicare beneficiary. According to the law, Medicare is a secondary payer to Group Health Plans (GHPs) for certain beneficiaries.

A beneficiary for whom Medicare pays second and Group Health Plans (GHPs) pays first is:

1) A Medicare Beneficiary who is aged 65 or older and working with coverage under an employer -sponsored GHP, as a result of being employed by an employer with 20 or more employees (or if it is a multi-employer plan where at least one employer has 20 or more full or part-time employees) OR

2) A Medicare Beneficiary who is aged 65 or older and with coverage under a working spouse's employer-sponsored GHP, for an employer with 20 or more employees (the working spouse can be any age)(or if it is a multi-employer plan where at least one employer has 20 or more full or part-time employees) OR

3) A Medicare Beneficiary who has End Stage Renal Disease (ESRD) and are covered by a GHP on any basis. In this case Medicare pays secondary for a 30 months coordination period OR

4) A Medicare Beneficiary who is disabled and has coverage under his own or a family member's GHP for an employer with 100 or more full or part-time (or if it is a multi-employer where at least one employer has 100 or more full or part-time employees.) Based on the above rules the onus is now on employers to provide mandatory reporting of MSP data.

Recommended Links:

1) Medicare Secondary Payer -MSP Reporting
2) Group Health Plan (GHP)

Medicare Part A - What is Medicare Part A and What Does it Cover?

This is the basic information about Medicare Part A which will cover home health care, hospice care, and hospital stays that are classified as inpatient. Medicare is a government created program to provide insurance to individuals who meet a given criteria. This program was set up to cover the costs of these persons medical bills. Medicare Part A was created with the original Medicare package, is an insurance that is bankrolled by the government, and covers costs associated with home health services, hospice, nursing home facilities, hospital stays that are classified as inpatient, and Non medical Health care Institutions with a religious affiliation.

Who is Eligible to Receive Medicare Part A?

Individuals over the age of 65
Individuals who are under the age of 65 but have a qualifying disability
Individuals who suffer from terminal kidney disease and are in the end stages of this disease

What costs are associated with Medicare Part A?

There is no premium for Medicare Part A if you paid in Medicare taxes while you were working. There is also no premium if your spouse paid these kind of taxes.

Medicare Part A may be available to you for a cost if you are over 65 and meet certain requirements of citizenship.

You may also purchase coverage if you are under 65, suffering with a disability, but no longer eligible for free coverage because you have been able to resume working in some capacity. Premiums for Medicare Part A can run as high as $433 each month. When you purchase Part A, you are usually required to also purchase Part B.

When Am I Eligible to Enroll for Part A?

Your Medicare coverage begins automatically the first day of the month of your 65th birthday, as long as you are collecting social security or benefits from the Railroad Retirement Board. You should receive a Medicare card mailed to your home about 3 months prior to your 65th birthday.

If you are under the age of 65, but disabled, you become eligible for Medicare Part A when you have been receiving social security disability benefits or RRB benefits for 2 years. In the first month of your third year, you will receive your Medicare card. There is an exemption made for those that have Amyothropic Later Sclerosis. These individuals are eligible for Medicare Part A the same month that they begin receiving social security disability benefits.

You may have to take the first step to enroll for Medicare Part A, even if you meet the eligibility requirements. If you are not currently collecting your RRB benefits, if you were a railroad employee, or you social security benefits, you should call the social security office 3 months prior to your 65th birthday to find out how to enroll.

Purchasing Part A

The following are the circumstances under which Part A coverage can be purchased:

At the onset of enrollment 3 moths prior to your 65th birthday
Up to 3 months after your 65th birthday
During the open enrollment periods from January 1 to March 31 each year

You should make sure to enroll for your Medicare when you are initially eligible, otherwise you may incur increases or fees with your premium. The following are exceptions to this rule:

If you did not enroll at your 65th birthday because you or your spouse were enrolled on an employers' plan, you have 8 months beyond the time that your employment or health insurance ends to sign up for Medicare Part A.
If you are volunteering in an international capacity, you have 6 months beyond the end of your assignment to enroll.

Medicare Part A covers the following:

Occupational Therapy
An inpatient hospital in a semi private room including nursing care, medications, and meals
Blood transfusions when the hospital must purchase the blood to be transfused
Hospital supplies
Part time nursing care, speech therapy, or physical therapy when it is deemed medically necessary
Hospice services if you have a terminal illness and are expected to live for 6 months or less
Up to 100 days each benefit period in a skilled nursing facility care including meals, semi-private room, rehabilitative services, skilled nursing,and other medically necessary services.

The Following is Not Covered by Part A

Custodial Care
Dental Checkups and Dentures
Acupuncture
Cosmetic Surgery
Hearing aids and exams
Routine foot care
Routine or annual physical exams
Most prescription drugs
Long-term care
Syringes or insulin
Routine eye exams, eye refractions, and most eyeglasses
Travel

To Learn Even More About Medicare A, B, C & D, visit the Medicare Coverage Guide Today at http://medicareinsurances.com.

Quickbooks Tip - Employees Versus Independent Contractors

The days when a small business could ignore the risks of having misclassified workers are over. Unfortunately, some employers improperly classify their employees as independent contractors to avoid the pain associated with having employees. Namely:

Payroll taxes
Minimum wage or overtime requirements
Other wage and hour law requirements, like providing meal periods and rest breaks
Reimbursable business expenses employees incur in performing their jobs

Additionally, employers don't have to cover independent contractors under workers' compensation insurance, and are not liable for payments under unemployment insurance, disability insurance, or social security. It's true, the expenses associated with employees are high. However, the cost of misclassifying workers is even higher. If your contractors are determined to really be employees you will not only be required to pay the taxes and fees you should've, you may also be required to pay the employee's taxes as well. Not to mention the stiff penalties and interest that can be imposed by both federal and state agencies for violating the various laws.

This is no small matter and is on the radar of every government agency out there, all of whom are anxious to find additional revenue sources these days. The IRS estimates that one in seven U.S. employers is guilty of misclassifying some of its employees, resulting in a loss of more than $4.1 billion a year in tax revenues. These days the question is no longer "if" you'll get audited for employee misclassification it's "when". For businesses facing an audit, the odds favor the IRS. A recent report found that 92 percent of the companies audited for "misclassification" were hit with significant penalties and assessed for back taxes. Between 1988 and 1995, the IRS audited more than 13,000 businesses, reclassified 500,000 of their independent contractors as employees, and levied $830 million in back taxes and penalties.

Making matters worse, sometimes the various agencies disagree. For instance, here in California there are several state agencies involved with the determination of independent contractor status: (1) the Employment Development Department (EDD), which is concerned with employment-related taxes, (2) the Division of Labor Standards Enforcement (DLSE), which is concerned with whether the wage, hour and workers' compensation insurance laws apply; (3) the Franchise Tax Board (FTB), which is concerned with state income taxes; (4) the Division of Workers' Compensation (DWC), which is concerend with worker's compensation; and (5) sometimes even the Contractors State Licensing Board (CSLB), that also have regulations or requirements concerning independent contractors and it's not uncommon for one to rule that a worker is an employee while another rules that the same worker is an independent contractor.

Because the potential liabilities and penalties are so significant if an individual is treated as an independent contractor and later found to be an employee, each individual working relationship needs to be thoroughly analyzed to make sure every single worker is properly classified. Now is not the time to group classes of employees together. Just because one of your workers qualifies as an independent contractor, don't assume that all the others doing similar work will.

It all boils down to control - does your business have control or the right to control the worker both as to the work done and the manner and means in which it is performed? The IRS breaks control down into three categories: behavioral control, financial control, and relationship of the parties. It is very important to consider all the facts for every single one of your worker relationships - no single fact provides the answer.

Behavioral Control

These facts show whether there is a right to direct or control how the worker does the work.

Instructions - if your business has the right to direct or control the work, even if you don't actually exercise the right, it can lead to an employee classification. Here are a few examples of what's considered control:

how, when, or where to do the work
what tools or equipment to use
what assistants to hire to help with the work
where to purchase supplies and services

Training - if your business provides training about required procedures and methods it may be considered an indication that the business wants the work done in a certain way, which can lead to an employee classification

Financial Control

These facts show whether there is a right to direct or control the business part of the work. Here are a few questions to ask yourself:

Does the worker has unreimbursed business expenses?
Did the worker invest in the facilities used in performing services?
Does the worker makes his or her services available to the other businesses?
How do you pay the worker?
Can the worker can realize a profit or incur a loss?

Type of Relationship

These facts show how the business and the worker perceive their relationship.

Do you have written contracts describing the relationship the parties intended to create?
Is the worker available to perform services for other, similar businesses?
Do you provide the worker with employee-type benefits, such as insurance, a pension plan, vacation pay, or sick pay?
How permanent is the relationship?
Are the services performed by the worker a key aspect of your business?

You'd think that a written contract detailing that you and your worker agree that you are not creating an employer-employee relationship is all that's needed, but unfortunately this isn't the case. It may certainly help, especially is you subsequently issue a 1099 form instead of a W-2 form, but even this doesn't guarantee protection.

If you decide to classify some or all of your workers as employees, this is what you have to look forward to:

You must withhold income tax and your employee's portion of social security and Medicare taxes.

You are also responsible for paying social security, Medicare, and unemployment (FUTA) taxes on your employees' wages.
You must file a Form W-2, Wage and Tax Statement, showing the amount of taxes withheld from your employees' pay. The Form W-2 is used by employers to:

Report wages, tips and other compensation paid to an employee
To report the employee's income tax and Social Security taxes withheld and any advanced earned income credit payments
To report wage information to the employee, the Internal Revenue Service and the Social Security Administration

QuickBooks handles W-2's differently based on which payroll subscription you've chosen. There are three options available:

Basic Payroll: No tax forms, only reports that your accountant can use to prepare them

Enhanced Payroll: Includes all federal and many state tax forms, you pay taxes and file forms

Assisted Payroll: Intuit handles your payroll taxes for you

If you decide to classify some or all of your workers as independent contractors, there isn't as much paperwork but there are some reporting requirements:

You may be required to file Form 1099-MISC, Miscellaneous Income, to report what you have paid to your independent contractors. The Form 1099-MISC is:

Used to report payments made in the course of a trade or business to another person or business who is not an employee
Required among other things, when payments of $10 or more in gross royalties or $600 or more in rents or compensation are paid
Provided by the payer to the IRS and the person or business that received the payment.

You do not have to withhold taxes from your independent contractors' pay. They are responsible for paying their own income tax and self-employment tax. If setup properly, QuickBooks can help you track all the information needed for 1099's. Here's how:

Turn on 1099 preference

Edit Preferences Tax:1099 Company Preferences tab, check box next to Do you file 1099-Misc forms and select accounts you use to pay subcontractors next to Box 7

Setup subcontractors as 1099 vendors

Double-click on vendor, select Additional Info tab, check box next to Vendor eligible for 1099

Manage reporting process

Vendors > Print 1099's/1096

In the end, how to classify your workers is a business decision that only you can make. You may save money upfront by classifying them as independent contractors, but you could end up paying much more in the long run if they are reclassified. Protect yourself as much as possible with a paper trail - contracts, agreements, written answers to the questions listed above. You might even consider requiring your independent contractors to prove you with documentation that they are actually operating a small business themselves, such as a business license, Doing Business As (DBA) or Tax ID number from the IRS.

If you need additional assistance, please call our QuickBooks technical support line at 888-351-5285. We are here to help you get the most out of QuickBooks!

Ruth Perryman is the president of The QB Specialists. She is a Certified Advanced Quickbooks ProAdvisor, an Intuit Solutions Provider, and a member of Intuit's Trainer/Writer Network, with over 19 years of industry experience including 5 years as a Chief Financial Officer. She has been working with Quickbooks since 1996, and specializes in customizing QuickBooks Enterprise and QuickBooks Point of Sale. She also provides virtual controller and CFO services.

If you need additional assistance, feel free to call our QuickBooks technical support line at 888-351-5285. The first ten minutes are absolutely free! Plus receive additional free minutes with every purchase - visit our website for more details.

Eliminating Future Federal Budget Deficits Permanently by Reforming Social Security and Medicare

With President Obama's latest federal budget proposal it is no surprise that years of entitlement, pork barrel spending and outright waste are forcing drastic fiscal measures. The fact is, entitlements are destroying the U.S. from the inside out, like a form of stomach cancer, eating away at the very core of our country. Many in Washington D.C. are seeing the end of the road they've been kicking the can down for many years. Meaningful measures are going to be needed in fiscal reform if the U.S. is going to preserve its stature as the greatest nation the world has ever known. The question is, will this fiscal reform be significantly higher taxation or drastic reductions in spending? You see, we are at that proverbial fork in the road. Do we go left (increased taxation) or do we go right (decreased spending). There is only one choice if we believe in the American Dream and the preservation of our nation. This article will set out to make the case for reforming the entitlement programs that are dragging us down, in order to preserve the American Dream for future generations.

Social Security and Medicare, as they exist today are unsustainable. I did not make this up. David Walker, former head comptroller of the Congressional Budget Office, has been singing this tune for many years. Few argue with his assessment. In the secret enclaves around Capitol Hill, talk of the need to drastically reform Social Security and Medicare is omnipresent. Most accept the fact that these entitlement programs, one way or another, will go away. But without any real leadership on this issue in the White House, solutions are hard to come by.

Reforming Social Security and Medicare is the solution to our fiscal woes. But what should be done? What type of reform is needed?

The answer is simple. Privatize Social Security and Medicare. We need to take our federal and state governments out of the equation.

We can piggyback off the existing system by continuing the mandate for individuals and businesses to contribute 8% each (8% employee contributions and 8% employer contributions) to private retirement and medical health savings accounts. Three-fifths, or approximately 5%, would be mandated contributions into private retirement accounts and the balance, approximately 3%, would represent mandated contributions into health savings accounts. Implementing this reform, however, must address the need for phase-ins.

How to Phase-In Reform in six steps:

Step #1 Grandfathering Social Security and Medicare for those fifty and older.

Clearly any reform needs to address the needs of those who have contributed to Social Security and Medicare for most of their working lives. As such, we must preserve Social Security and Medicare benefits for those age fifty and over. This group would receive 100% of their Social Security and Medicare benefits. This group does not have the luxury of time on their side to participate in the reform that is needed without becoming financially destitute in their retirement years. This group must be grandfathered into the "old" Social Security/Medicare benefits system.

Step #2 Phase-Outs for those age forty - forty-nine

For this group, they have time to make contributions into their private retirement and health savings accounts. But their time is limited. As such, this group must be phased out of Social Security and Medicare. Preserving 50% of their future retirement benefits and mandating contributions to private retirement accounts and health savings accounts will provide this group with sufficient benefits for their retirement years.

Step #3 Privatizing Social Security and Medicare for those under age forty

This group has sufficient time for the mandated contributions to compound and grow, Social Security and Medicare would be completely phased out for this group, who will receive $0 Social Security and Medicare benefits. They will rely entirely on their accumulated private accounts.

Step #4 Eliminate the cap on earnings subject to the mandated 8% contributions

Currently, mandatory contributions to Social Security end once an individual reaches a certain earnings threshold for the year. This threshold would be eliminated and individuals would continue contributions into their private retirement accounts indefinitely.

Step #5 Contributions Allowed Past Age 70

For as long as individuals are physically able to earn income, they should be permitted to continue their contributions into their private retirement and health savings accounts with no minimum beginning date or required distribution date.

Step #6 Creating a Legacy for Future Generations

It is likely that some individuals will not outlive their private retirement/health savings accounts. As such, the balances remaining upon death should be passed along to designated beneficiaries, who will inherit these accounts for their future retirement and medical needs.

Tom is a Certified Public Accountant, a Certified Financial Planner, CLTC (Certified Long-Term Care) and President of Cerefice & Company, the largest CPA firm in Rahway, New Jersey. Tom works with clients helping them manage their money, retirement planning, college savings, life insurance needs, IRAs and qualified plan rollovers with an eye towards maximizing tax benefits and minimizing taxes. Tom is founder of the Rich Habits Institute and author of "Rich Habits".

Medicare Open Enrollment - The Next Casualty in the Battle For Insurance Equality

As the New York Times reported earlier this month, employees who are still fortunate enough to have group health insurance coverage from their employer (even though their plan options are shrinking along with the U.S. workforce), Medicare recipients will have the opposite problem in a few weeks- a potentially overwhelming and confusing list of choices. They may need to sort through dozens -- even hundreds -- of plans governing everything from diabetic supplies and home medical devices to prescription drugs and physical exams during the annual enrollment period, which starts on November 15.

Happy New Year!...Now Open Your Wallet.

The Medicare open enrollment process is fast becoming another casualty in the battle for healthcare equality in America. But there's still money to be made in the midst of confusion and healthcare entrepreneurs know it. It's the reason why television viewers are barraged daily by folksy, personal pitches from trustworthy actor icons like Wilford Brimley and Tom Bosley who talk Seniors into Part B supplements and Part D prescription drug plans; push power chairs at "no cost to you"; and propagate no finger-prick diabetic meters in a jellybeanish array of colors. It's a product marketing machine with no signs of slowing down. "Companies are allowed to start marketing for the annual enrollment period on Oct. 1," says Seemin Pasha, director of policy and communication at Health Assistance Partnership, a consumer advocacy group. "But sifting through all these materials can be confusing."

It's hard not to imagine how the basics of "Medicare-speak" in America have caused otherwise healthy Seniors to buy into the falsehood that they're suddenly incapable of living their lives without products of paranoia. But for those Seniors who truly need the services that so-called "Medi-Gap" coverage (Part B) provides, this year's enrollment process will require a bitter pill to swallow.

All the Moving Parts

Medicare Part A covers hospitalizations and is provided at no charge to enrollees. Part B covers fees from doctors and other health care providers and requires a monthly premium. In years prior, both A & B were also rolled up into one and packaged as an Advantage plan with prescription drug coverage --- or Part D. This year, if you're under a packaged Medicare deal, you may soon lose your advantage. Or not. No one's really sure yet. Not even the government. But don't worry, seniors --- you'll get a little pamphlet or a letter soon to help you sort it out. Just make sure you have a magnifying glass when the mail man arrives.

Medi-Gap vs. Straight-Up Insurance

On the flip-side, obtaining a private health insurance quote for individuals has always been a pretty painless task. A click online here, a small questionnaire there, insert some personal info in a form and you're done. But if you're a Medicare recipient, paperwork rules the process. Plus, this year's open enrollment will add another layer of confusion to the already difficult Medicare bureaucracy, leaving Seniors to jump head-first into a bottomless pool of options for accessing our nation's public health care system. For starters, open enrollment will hit brand new Medicare enrollees hard.

A humble offering from Uncle Sam means no cost-of-living increase this year for Medicare Part B enrollees. Their rates will stay the same as for 2009, at $96.40 a month. However, if you're among the millions who are unemployed, are uninsured, or otherwise are on a fixed income and become a first-time Medicare recipient this year, you'll pay 15 percent more than established Medicare beneficiaries, at $110.50 a month. For a little more than that, Seniors can (and often do) buy individual private insurance coverage online for worry-free simplicity. No supplements, no packages and no bureaucracy.

Regardless of how the healthcare reform bill shakes out, competition is alive and well in the medical insurance marketplace. And so long as there are annual changes and premium hikes in Medicare, competition is here to stay. A former business journalist, current coffee fanatic and subject-matter expert in all-things-insurance, Michael lives in Miami.

A Guide to Medicare Coverage

Signed into law by then-President Lyndon B. Johnson on July 30, 1965, Medicare coverage began as a social insurance program for American citizens age 65 or older. Today Medicare also covers citizens who may not be 65 years old but demonstrate need. Those suffering with Lou Gehrig's Disease, in need of a kidney transplant or have been receiving Social Security benefits for at least 24 months are all examples of people who qualify for Medicare.

Originally, Medicare coverage applied only to Hospital Insurance (known as Part A) and Medical Insurance (Part B). Former President Harry S. Truman was the first recipient of an official Medicare card, which then rarely entitled the holder to prescription drug coverage. As of early 2006, more comprehensive drug coverage was provided.

Medicare Part A

Part A of Medicare is Hospital Insurance, which will cover hospital stays, nursing home or assisted-living home care for a period of time. To receive the benefits of Medicare Part A, there are four main criteria that must be met, the first of which addresses only hospital visits:

The hospital stay must be a minimum of three days and three midnights, not including the day you are discharged
A nursing-home stay is covered only if the problem is diagnosed during the hospital visit outlined above. For example, if a respiratory issue sent you to the hospital, Medicare would cover a nursing home stay to help rehabilitate your lungs.
If you don't need rehabilitation at a nursing home but have an ailment that requires constant medical assistance or supervision, the stay would be covered.
Those caring for you at the nursing home have to be skilled. Part A of Medicare does not cover long-term, unskilled or custodial care.
Regarding nursing-home stays, Medicare will only cover 100 days per ailment. The first 20 days are paid for by Medicare in full; the next 80 days require a copayment of $128 per day (as of 2008). Whenever you go 60 days without using Medicare to help pay for a nursing home stay, the 100-day clock is reset and you qualify for a new 100 day period.

Medicare Part B

Part B of Medicare deals with Medical Insurance. This section covers most outpatient services and medically necessary products that Part A leaves untouched. Everything from doctor's visits to immnuosuppressive drugs for organ-transplant recipients are covered by Part B, including limited ambulance transportation.

In addition to outpatient doctor's services and treatments like chemotherapy, Part B helps you to pay for durable medical equipment (DME). Examples of DME include mobility scooters, prosthetic limbs, canes and oxygen.

Medicare Part C

Part C of Medicare deals with Medicare Advantage plans. After the Balanced Budget Act of 1997 passed, Medicare recipients were given the choice to either keep their original Medicare plan (Parts A and B) or receive their benefits through a private health insurance plan. After the Medicare Prescription Drug, Improvement and Modernization Act was enacted in 2003, those using private health insurance through Part C became known as Medicare Advantage (MA) recipients.

If you choose Medicare Advantage, Medicare will pay a set amount each month toward private health insurance. You're required to pay any additional premiums, and in many cases you'll have to pay a fixed copayment amount (usually around $10 or $20) each time you see a doctor. By law, the private insurance company you choose must offer a benefit package that is at least as good as the one provided by Medicare Parts A and B.

Medicare Part D

Medicare Part D provides coverage for prescription drug plans and went into effect at the beginning of 2006. If you use Medicare Part A or B, you are eligible for Part D. If you're using an MA Plan, you can adjust your benefits to take advantage of Part D, in which case the overall plan becomes an MA-PD.

To get Medicare Part D, you need to enroll in a Prescription Drug Plan (PDP) or change your MA coverage to MA-PD. Costs and benefits vary between the different plans, and medications that you need may not be covered by all plans. Some drugs, such as cough suppressants, benzodiazepines and barbiturates, aren't covered at all.

To get the best Medicare Part D coverage at the best price, you should compile a list of your prescriptions and talk to your pharmacist, MA provider or a Medicare representative. You can get a head start by visiting http://formularyfinder.medicare.gov/formularyfinder/selectstate.asp, which provides a list of Medicare Part D options by state when you provide your prescriptions.

Costs

Each year that you work, 2.9% of your wages are taxed under the Federal Insurance Contributions Act (FICA) and applied to your future Medicaid coverage. This 2.9% is split between employers and employees. Those who are self-employed have to pay the full 2.9% on their own. There is no limit to the amount of your wages that must be paid to FICA tax.

Once you're eligible for Medicare, it works like private health insurance. Your care provider bills Medicare for expenses, and you make up any differences that aren't covered.

Medicare coverage is limited, and while it can provide some protection for routine expenses or a minor injury, such as a broken leg, it's not a solution for long-term care needs. For this reason, it's a good idea to look into supplemental coverage, known as Medigap, to cover additional costs. While the monthly premiums for Medigap insurance can be high, they're still far lower than the medical bills that pile up in the event of a catastrophic illness or if you need long-term care.

For more information on medicare, visit the career and money section of Life123.com.