Medicare MAPD: Loved By The Elderly, But Will It Last? 1
Harry Truman began the process of establishing a national health plan by asking Congress to enact legislation in 1945. Twenty years later, he was the first person to enroll in Medicare under the new enacted law signed by Lyndon Johnson. The dangers of “socialized medicine” have been debated for two decades, and now the United States has opened its doors to the first beneficiaries of Medicare, a program for people over 65 or disabled and Medicaid, the complementary plan for the homeless. The Medicare design focused on two levels of care. Medicare Part A covers hospitals, skilled nursing, palliative care and home care. Part A is free, but most of those who qualify will pay through Medicare taxes during their years of work.
Medicare Part B includes medical services, outpatient services, durable medical equipment, home health care and other medical services. Part B requires a premium, which in 1965 was $3 per month and is now close to $100 per month. Claims paid by Original Medicare represent approximately 70% of the total submitted by a provider. The general rule today is that Medicare will approve 80% of the charges sent. Of that 80%, Medicare pays a share of another 80%. For the Medicare member visiting https://www.medicareadvantageplans2020.org , this represents approximately 65% of the bill. The responsibility to pay the remaining 35% belongs to the member. There is no upper limit than what might be due.
With a possible multi-million dollar liability for a registered Medicare, the first policies offered by Medigap or Medicare Supplement were offered by Bankers Life in the early 1970s. These plans covered the surcharges for Medicare A and B no. I would pay The Medigap concept became widely accepted by the public and soon hundreds of companies were offering their own versions of Medicare supplement plans. Market abuse among agents continually “replaces” their own coverage on the basis of an improved or better plan or the unnecessary sale of multiple plans to seniors to win a new commission led to federal standardization of the policies of Medigap in 1992. This change made the sale of various policies illegal and standardized all the policies offered. An example would be that if an older person considered an “F” plan of company A, it would be exactly the same as an “F” plan of another company B. With that, the buyer only had to consider the price and service he expected, but they no longer had to worry about the difference in benefits.