Vicki L. Madigan
Independent Benefits Consultant
Medicare Beneficiaries :: Individuals :: Families :: Businesses
In 1965, Congress created Medicare under Title XVIII of the Social Security Act to provide health insurance to people age 65 and older. President Lyndon Johnson signed the Medicare amendment into law.
Prior to Medicare only one-
People under 65, receiving Social Security Disability Insurance, were granted Medicare coverage in 1972.
In 2006 Congress voted to separate the Medicare Part D Prescription Drug plans from the Medicare Supplements/Medigap policies. All eligible persons who do not receive creditable prescription drug coverage from another plan need to enroll in a Medicare Part D plan to avoid the penalty tax. Once a person is assessed a penalty tax by Social Security Administration the penalty follows you for your lifetime regardless of who your Medicare Part D coverage is insured by. The penalty tax is added to the premium you pay the insurance company for your Medicare Part D plan.
In 2010, 48 million Americans received Medicare benefits – 40 million were over 65 and 8 million were under 65 with disabilities.
Medicare, in 2010, only covered 48% of medical expenses
for enrollees. Medicare benefits may be supplemented
with Medicare Advantage or Medicare Supplements/Medigap policies.
Medicare Structure: What are the different parts of Medicare?
PART A: Hospital Insurance. Covers inpatient hospital stays, skilled nursing facilities, Hospice care and Home health care. Has a $1,216 deductible (2014) per benefit period and 20% co-
PART B: Medical Insurance. Covers services from doctors and other health care providers, Outpatient care, Home health care, durable medical equipment, and some preventative services.
Has a monthly premium and an annual deductible of $147.00 (2014) and 20% co-
PART C: Medicare Advantage Plans. Includes all benefits and services covered under Part A and Part B. Medicare Part C is administered by Medicare-
PART D: Medicare Prescription Drug Coverage. Medicare Part D helps to cover the cost of prescription drugs. Medicare Part D is run by Medicare-
Medicare Supplements/Medigap Plans
Medicare recipients may opt to minimize their financial risk of being enrolled in only Original Medicare by purchasing a Medicare Supplement Plan. These insurance policies are standardized by Centers for Medicare & Medicaid Services (CMS). Most premiums are paid on a monthly basis and rates/premiums are determined by the person’s age, zip code, and tobacco usage.
Medicare Advantage comprises a variety of private health plans – most often HMO’s, HMO-
Vicki Madigan is a licensed insurance agent in Illinois
and Wisconsin. She is authorized
and certified to offer you insurance products
in Medicare Supplements/Medigap policies, Part D
Stand Alone Prescription Drug plans,
and Medicare Advantage Plans.
Individual home appointments are recommended
to analyze your specific healthcare needs
and find the best plan that gives you
the most comprehensive health care coverage
at the lowest out-
Schedule your appointment today. Call (847) 457-