Medicare, also known as Original Medicare, like many things, has its pros and cons. Medicare is the federal health program for persons 65 and over, and for those under 65 with certain disabilities. Many people think that once enrolled in Original Medicare they don’t pay any out of pocket costs, but this is not true. This is one of the cons, but check the chart below for a pro/con comparison.
Medicare Pros and Cons
| Medicare Pros | Medicare Cons |
|---|---|
| Largest Nationwide Network of Doctors and Hospitals | Does not cover (most) foreign emergency care |
| Medicare is a single plan that has specified coverage | Does not cover prescription drugs |
| Most people get Medicare Part A premium free (no monthly cost) | Everyone pays for the Part B premium ($174.70, higher incomes pay more) |
| Medicare partially covers hospitalization and Skilled Nursing Facility (SNF) care | Medicare puts a cap on hospitalization and SNF days, as well as, you owe a deductible ($1,632), and coinsurance ($204 to $816) |
| Medicare Part B partially covers doctor’s visits, durable medical equipment, and lab work | You still owe a deductible ($240), 20% copays and coinsurance. |
| $0 Preventive Care | Doesn’t put a cap on your out of pocket spending each year |
What is Medicare?
Now that you’ve gone over the pros and cons list, you may still wonder what Medicare is. Medicare is a federal program set up in 1965 to help cover seniors 65 and over, and those under 65 with certain disabilities. Medicare was never meant to fully cover all of your costs, but to help alleviate the costs of aging healthcare. It is clearly not perfect or exhaustive but it’s a good start.
Pros and Cons of Medicare Recap
As you can tell by looking at the chart, there are a great many pros, as well as there are cons. The biggest cons are that there can be a lot of out of pocket costs with no cap on how much you can spend in a year, plus Medicare limits the days it will pay for you in the hospital.
Medigap plans and Medicare Advantage plans both address your Medicare out of pocket cost. You may want to check out the pros and cons of Medigap, and the pros and cons of Medicare Advantage. If you are new to all this then check out the links below.
Learn More about Medigap Learn More about Medicare Advantage
For further questions call one of our licensed agents at 800-930-7956.