Traditional Medicare plans include Medicare Part A (hospital) and Medicare Part B (medical).
Costs
- Part A (hospital) coverage is free.
- Part B (medical) coverage is relatively inexpensive – generally $96.40 per month in 2010 for single taxpayers with an income of $85,000 or less or couples with $170,000 or less in income.
However, due to the limitations of traditional Medicare coverage, many people also end up getting supplemental insurance (
Medigap) and
prescription drug coverage (Part D), which both cost extra.
Supplemental Insurance (Medigap)
Without this extra insurance, you may be stuck with large medical bills to pay – or unable to pay.
Unfortunately, the rules for Medicare supplement insurance are different for Medicare beneficiaries under 65 who are on
Social Security disability.
- Those with disabilities on traditional Medicare have very limited access to supplemental insurance.
- Insurance companies can impose up to a six month waiting period for pre-existing conditions before paying benefits.
- This exclusion of coverage usually applies if you were previously uninsured or didn’t apply within 63 days after your previous health insurance coverage ended.
Since traditional Medicare without supplemental coverage can be very expensive and the fact that supplemental coverage is not an option for many people with disabilities,
Medicare Advantage plans are a good alternative. These plans also can incorporate prescription drug coverage.