What Is A Medicare Cost Plan?

Medical care plans in the United States are confusing.

There are so many different things to discuss and so many different sections with tiny print on them, it’s a wonder that the average American understands anything about healthcare at all.

Many Americans use a medicare plan, given that it is an option for most people unlike other plans, and even that has 4 very long and seemingly deliberately confusing sections to it.

However, there are other options out there and one of them is known as the medicare cost plan.

This has become an increasingly popular health care option for many people, but what exactly is a medicare cost plan? And how exactly does it differ from the normal medicare plan or even medicare advantage.

In this article, we seek to delve into the medicare cost plan and give you a simplified rundown of it, so you aren’t left trying to work out this confusing health care plan on your own.

What Is Medicare?

The medicare system is the formal name for the government provided health insurance system of the United States. This insurance system was started in 1965 as part of the social security administration (SSA).

Since that time, the number of Americans has grown exponentially, and it is now managed as part of the centers for medicare and medicare services or CMS.

Of the 330 million people in the United States today, about 60 million of them are covered by medicare and of those 60 million, the majority of them are over 65.

While medicare is meant to provide a safety net to those who are particularly vulnerable and probably can’t afford other healthcare, it has some dogged issues.

For starters, it does not cover everything.

This is normally because the recipient must choose parts of the healthcare plan – either part A, B, C, or D – each one with a different expense or amount of expense that the plan will cover.

The reason most people can’t just choose all of the plans is that they probably can’t afford to do so.

Medicare is paid for through payroll taxes, beneficiary premiums, surtaxes, co-pays, deductibles, as well as some input from the US treasury.

While this pays for a lot, normally it only covers half of the expense of the medical costs of the recipient. The recipient then must pay for rest or find some kind of private cover to help them.

What Is A Medicare Cost Plan?

A medicare cost plan is a bit like the part C or part D plans of medicare, which are additions to your healthcare plan that give you more benefits and access to more things.

The difference is that medicare cost plans are not actually offered by medicare, but by private companies that work with and are approved by medicare.

In these plans, the original medicare packages – part A and B – are the basis with additional benefits added to the mix.

This appeals to a lot of Americans, as health is highly individual and so if you are having to spend on it, you don’t want to waste money on things you don’t need treatment for.

However, these plans are only available in some areas of the country, and they have been reduced in other areas, thanks to several federal laws being enacted that led to their discontinuation.

The appeal of these plans is the expansion of the services and areas that you receive.

Through the plan, you gain access to that particular plan’s network of healthcare providers and if you go for a healthcare provider out of their network, you can use your original medicare plan to get assistance.

This medicare plan also allows for coverage of the part D medicare plan. This is one that covers self-administered prescription drugs, like antibiotics or painkillers.

Even if part D isn’t included in your particular plan, you can easily enroll in part D due to your movement to a Medicare cost plan.

Difference Between Medicare Cost Plans And Medicare Advantage

The main difference between medicare advantage and medicare cost plans is how they interact with the original medicare plans.

Medicare advantage effectively replaces all other medicare, in exchange for additional benefits that may include dental, hearing, and vision care.

On the other hand, medicare cost plans work in tandem with original medicare, and you don’t lose access to the original plan.

Therefore, you do not have to worry about switching over, as it is more like adding a few bonus benefits to the original plan.

Medicare cost plans also have a bit of a wider scope to work with, as you can work with healthcare services outside of the provider’s network, which is not possible with medicare advantage.

With advantage, if you go to an out-of-network professional, it will cost you more.

However, the cost of this plan is a little higher. While they both work with private companies, medicare advantage doesn’t usually have monthly premiums, whereas medicare cost plans do.

This means you would in effect pay more, but for much more coverage and flexibility.

Who Is Eligible For A Medicare Cost Plan?

There are several steps before you can get a medicare cost plan for yourself. These tend to work chronologically, due to the nature of the plans themselves:

–    Enrolled in medicare plan B.

–    Live in a place where there are medicare cost plans being offered.

–    Find a cost plan that is accepting new recipients.

–    Complete the application during the process’ enrollment stage.

–    Agree to all the plans rules during this stage.

While it is possible to be denied from a medicare cost plan, if you meet all the requirements it is exceedingly rare.

Conclusion

A medicare cost plan is a great alternative for anyone needing medical assistance in the US today.

However, it is important to know whether you can apply for the plan and whether it is right for your circumstances before you proceed.