SSDI COMES WITH MEDICARE

In today's economy, the cost of medical care is one the biggest financial concerns that we face. I recently spent a few days in the hospital and my medical bills exceed $30,000. A not-so-good private health insurance policy can cost as much as your house payment and still leave you with thousands of dollars in unpaid medical bills.

Fortunately, the government provides medical insurance for persons who get approved for disability. Those qualifying for Social Security Disability Insurance or SSDI benefits will also get Medicare.

However, Medicare comes with a 24 month waiting period. The waiting period begins with the first month a claimant becomes entitled for benefits. For example, if you are entitled to an SSDI payment on September 1, 2020, you will become eligible for Medicare 24 months later. (SSI benefits will be discussed later in this post).

Medicare has two primary parts:

PART A: Covers inpatient hospital confinement, subject to co-pays and deductibles.

PART B: Covers outpatient services, such as doctor's visits, X-rays or outpatient tests, subject to co-pays and deductibles.

Part A is free to the claimant and cannot be waived. Part B has a monthly premium, currently $144.60 for most recipients, deducted from your SSDI payments. Part B may be waived but be cautious. If you waive Part B when you first become eligible for Medicare, you are able to get it again except at certain "qualifying events."

Other "parts" may be purchased from the private insurance company of your choice. For example:

PART C is a supplemental policy which helps pay the deductibles and co-pays not covered by original Medicare. It is offered by several insurance companies. Plans and premiums will vary from company to company and plan to plan, so shop carefully.

PART D offers prescription drug coverage, subject to deductibles and co-pays. Premiums vary from plan to plan and company to company, so shop carefully. All plans are not alike.

PART D helps pay for prescription drugs subject to co-pays and deductibles. It is offered by several insurance companies. Plans vary widely in the drugs that are covered, co-payments and premiums. Not all plans will cover all drugs. The lowest premium may not offer you the best value. Medicare offers a web tool that can help you compare which Part D plans will leave you with the lowest annual cost on your drugs (medicare.gov).

NEVER CANCEL YOUR HEALTH INSURANCE UNTIL YOU ARE CERTAIN THAT YOU HAVE PARTS A AND B OF MEDICARE COVERAGE.

Individuals who are approved for Supplemental Security Income (SSI) will get Medicaid, primarily a state insurance plan which may get federal support. There is no waiting period and no premium required for Medicaid.