Medicare supplement plans fill up the gaps left by Original Medicare, allowing you to avoid the out-of-pocket expenses that would otherwise be incurred. With that, let’s take a look at some of the most often used phrases associated with Medicare and Medicare Supplement insurance:

Frequently Used Phrases:

Each year on your birthday, you can switch to a different Medicare Supplement company.   This is an option with a 100% success rate. It is not possible to be rejected the transfer due to your health situation.

Both Part A and Part B of Original Medicare are provided by the federal government-run program.

It’s the hospital coverage that Medicare pays for in the form of Part A. Each benefit period (60 days) in which you are admitted to a hospital, you are liable for the $1,100 deductible.

Medicare Part B provides coverage for outpatient physicians, specialists, and surgical treatments. There is a $155 yearly deductible for Part B that you will be required to pay at the commencement of each calendar year when you visit a physician.

Medicare Part B Premium

All Medicare recipients are expected to pay their Part B payment each month. In 2010, the monthly premium will be $96.40 per month. If you make moreover $85,000 a year, you’ll pay $110.50 in premiums though other restrictions apply.

Medicare-approved amounts are accepted as full payment for Part B-covered services and supplies under the terms of an agreement known as an “assignment”.

In most cases, Medicare pays the physician directly once the beneficiary has satisfied the $155.00 Part B deductible. Medicare pays an average of 80 percent of the authorized amount and the remaining 20 percent is covered by the Medicare supplement plans.

A Skilled Nursing Facility (Medicare Part A) is a medical care facility that is mainly used for the rehabilitation of patients. Patients who are recovering from an accident, sickness, or surgical treatment are often admitted to a skilled nursing facility.

Medicare normally covers all expenses except for $137.50 per day, which is paid by the patient. If a person has a degenerative disease, Medicare will no longer cover the cost of this procedure for that individual.

This means that the patient’s health must be improving before the coverage is terminated and long-term care insurance or Medicaid is required to continue to pay for these treatments.

Medicare Part D

Prescription Drug Coverage under the Medicare Program.

This one assist in defraying the costs of prescription medications. It is a necessity to acquire insurance from a private insurance provider.

Coinsurance under Part B – Following the payment of your Part B deductible, Medicare requires you to pay 20% of all Medicare-eligible outpatient services and supplies, including physician, specialist, ambulance, and hospital services and supplies.

Excess Charges

When the amount of your medical bill for Part B treatments exceeds the amount of your Medicare-covered expenditure.

In case the  Medicare authorized price for a certain visit or service is $100, the charge must be $100. If the Medicare Supplement pays for Excess Charges, Medicare Part B pays $80 and the Medicare Supplement pays the remaining $20, resulting in a total payment of $100.  But there are some insurance policies that might not cover this additional expense.

Initial Enrollment Period

This is the period during which you may enroll in the program (IEP) Your enrollment in Medicare Part B is assured if you apply for coverage before or within six months after enrolling in the Medicare program.