The Social Security Act of 1965 was signed into law July of that year. It consists of two primary sections, named Part A and Part B. Part A's focus is on hospital insurance.
It addresses a variety of items such as inpatient stays, home health care and a certain amount of time spent in a skilled nursing facility. It is provided at no cost to the individual, effective the month they turn 65. Medicare Part B covers medical insurance. Although senior citizens are usually automatically enrolled in the program, they must sign up for this insurance.
There is a monthly premium that is required to maintain the Medicare Part B insurance. In 2010, beneficiaries who earn less than $85,000 and have the Social Security Administration (SSA) withhold their premiums will not see an increase.
For those who earn more than $85,000, there is an increase of 15%. The SSA uses 2008 tax returns to make the determination. If income has decreased, beneficiaries must be able to show the new amount and meet various other criteria. For those having difficulty paying the premiums, beneficiaries should call the State Medical Assistance office. In some states it is referred to as the Public Assistance office or Public Aid office.
The Internal Revenue Service (IRS) provides the SSA with the adjusted gross income and tax-exempt interest income for Medicare Part B beneficiaries. If there has been an income related monthly adjustment amount, a new income level will be calculated and the monthly premium modified.
This amount will be effective for one full calendar year. In 1973, a cost of living adjustment (COLA) law was passed to help senior citizens handle increased expenses due to inflation. There is a specific formula that is used to determine COLA and it is based on the Consumer Price Index.
There will be no adjustments in 2010 due to low inflation rates and a weakening in consumer pricing. Medicare Part B premiums are automatically deducted from benefit payments from the SSA, Railroad Retirement Board or the Civil Service.
If beneficiaries do not receive any of these payments, they are billed directly. To maintain coverage, payments must be received by the 25th of each month. Medicare is a federally run low-cost insurance program designed to help the elderly pay for their healthcare needs. To qualify for this benefit, beneficiaries must be 65 years of age and made payments into the system for at least 10 years.
Medicare Supplemental Insurance Plans - Guidelines For Selecting Or Changing Plans Why Would I Need Medicare Supplemental Insurance? Medicare Supplement Plan N - A Great Alternative to Medicare Advantage How Can Product Liability Insurance Help You in Your Business?
0 comments:
Post a Comment