Medicare Options and Medicaid Benefits and Limitations

One advantage to getting older is being part of the Medicare system.

When looking at Medicare you have to be a U.S. citizen or permanent resident for at least 5 years and the enrollment is automatic when you are drawing social security. There are four different parts in this health insurance benefit program – Part A, B, C and D. Part A helps with hospital insurance benefits and Part B assists with physician services for which there is a charge. Adding Medigap insurance can be used to fill in the gap between Part A and B. Part C is Medicare Advantage – HMO services for Parts A, B and D allows for better benefits through private companies. The prescription drug coverage in Part D is voluntary and the costs are paid for by the monthly premiums of enrollees and Medicare. Then there is Medicaid. This is a needs based program that provides medical coverage to all U.S. citizens and legal residents. Although it is a joint Federal/State program, States may decide on how it is run as long as the program complies with minimum standards set by Federal law. Each Medicaid program must provide coverage to individuals who are both aged, blind or disabled; and considered needy based upon their income and resources with a 5-year look back rule.

IRS CIRCULAR 230

Any tax advice included in this written or electronic communication was not intended or written to be used, and it cannot be used by the taxpayer, for the purpose of avoiding any penalties that may be imposed on the taxpayer by any governmental taxing authority or agency.

Faculty

Marcia L. Miller, M.B.A., E.A.

Financial Horizons, Inc.