Medicare Open Enrollment for 2012 Approaching

Medicare is the Federal government health insurance program for individuals age 65 and older.  Be sure to sign up three months before turning age 65.  The initial enrollment period begins three months before the month you turn age 65 and continues until three months after you turn age 65.  However, if you sign up during the month you turn age 65 (or during the subsequent three-month period), insurance coverage will be delayed.  Medicare has four basic parts.

• Part A is in-patient hospital, skilled nursing facility, hospice, and home health care insurance.
• Part B is medical insurance for doctors and certain preventive care services.
• Part C is also known as Medicare Advantage and permits certain approved private insurance companies to provide benefits otherwise covered by Parts A and B and also usually Part D.
• Part D is for prescription drug coverage.

There are two basic ways of obtaining Medicare coverage:  (1) the original Medicare program of Parts A, B, and D to which so-called Medigap policies can be added; or (2) the Medicare Advantage Plan which is Part C to which Part D may need to be added and to which Medigap policies are not applicable.

Under the original program you pay monthly premiums for Parts B and D and for any Medigap policies.  Under the Medicare Advantage Plan you pay for the overall plan and also for Part D if prescription drug coverage is not part of the overall plan.  Note that premiums charged for Parts B and D are means tested and increase as your adjusted gross income increases.

An open enrollment period for Medicare occurs during the Fall of each year during which you can make changes to your Medicare plans without penalty for the next calendar year.  This year the open enrollment period begins earlier and ends earlier, from October 15, 2011 through December 7, 2011.

Deciding how to obtain Medicare coverage and selecting the underlying policies is a process that takes time and analysis to make the right decision for your circumstances.  For more information see the official government handbook, "Medicare and You" at http://www.medicare.gov/Publications/Pubs/pdf/10050.pdf