On Social Security and Medicare (Part IV)
4/12/2004
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More words on the Survivor Benefits we discussed last time: The benefits for a widow(er) caring for a non-disabled child stop when the child reaches age 16. The “black out” period will not end until the widow(er) reaches age 60 (or 50 if disabled).
That is to say, not only will be the government program’s payout a limited amount, it offers nothing for a widow(er) who’s under age 60 (or 50 if disabled) if not caring for an under-aged child. Thus, the need for an income protection plan for most families is paramount.
Now, we move to Medicare Benefits. Again, the dollar amounts stated here are for the year of 2004.
Generally, the coverage will not start until a qualified worker reaches age 65. But one may qualify for Medicare before age 65 if he or she has been entitled to Social Security disability benefits for two years.
As discussed in Part I, Medicare consists of two parts: Part A for Hospital Insurance and Part B for Medical Insurance.
Part A mainly covers three areas: First, hospital benefits that cover the full cost for the 1st 60 days’ hospital stay except an initial deductible of $840 payable by the taxpayer. A taxpayer needs to “co-pay” $210 per day after the first 60 days and can choose to co-pay $420 per day after 90 days for up to 60 “lifetime reserve” days (or pay the full charges oneself and save 60 days for possible future usage).
Secondly, Part A pays skilled nursing facility benefits after one has been hospitalized for at least three days. The government program pays full cost for the first 20 days and the balance after $105/day deductible for the next 80 days.
The third is home health services that cover skilled nursing care, physical therapy, medical supplies, etc. when a beneficiary is confined at home.
Part B of Medicare pays for doctors and other healthcare professional’s charges. Payable by a beneficiary, 2004’s standard monthly premium is $58.70 and initial deductible is $100 for the year. Then, Part B will cover 80% allowed charges by doctors and others. But it does not cover most prescription drugs, long-term nursing home care, services outside the US and some other items.
As can be seen, the cost not covered by Medicare could be substantial (along with many other Medicare limitations). This makes supplemental health insurance very important even if one is already inside the government’s “safety net”.
This completes our discussion on Social Security and Medicare. Should you have any questions, please feel free to contact us.
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