Medicare premiums, deductibles, and coverage issues can be confusing, but being aware of your Medicare options and costs is vital to making the most of your coverage. Medicare is split into three areas: Part A, Part B, and Part D. In addition, there are supplementary options available. Your costs and coverage are different for each part of Medicare and may depend on the plans you choose.

Medicare Part A

Medicare Part A covers hospitalizations, skilled nursing care, and some types of home health care. There is usually no premium, or monthly fee, for Part A although there is a deductible or co-insurance cost if you receive covered services. There are also limits to the number of hospital inpatient days that Medicare will cover.

Medicare Part B

Medicare Part B includes coverage for “medically-necessary” services and some preventative services. For example, Medicare part B may cover a doctor’s appointment or tests ordered by your doctor. Most people pay a premium of about $100 each month, although low income individuals may pay less. In addition, there is a 20% co-pay for covered services, meaning that you will pay 20% of Medicare’s fee for that service. Each year, you will also pay a deductible. In 2011, the deductible is $162.

Medicare Part D

Medicare Part D covers prescription drug costs, but Medicare does not directly provide Part D services. Instead, you must select a Part D provider, often called a Prescription Drug Plan. Unless you qualify for financial assistance, you will pay a monthly premium, which varies by plan. In most plans, you will also have a deductible and co-pay. Costs will vary throughout the year due to a coverage gap. After Medicare costs reach a certain threshold, you will be responsible for all costs for your medications. If your medications costs reach a second threshold, called “catastrophic coverage,” your coverage will restart and your co-pays may be lower. Because the Prescription Drug Plans have some flexibility, it’s important to research the plans that are available in your area to determine which is the best fit for your circumstances.

Medicare Advantage Plans

Medicare Advantage Plans, which are also referred to as Medicare Part C, combine Medicare parts A, B, and D into one plan. Depending on the plan, there may be a higher premium, different coverage options, or different deductible or co-pay amounts. For some people, a Medicare Advantage Plan may offer lower costs or better services, while others may find that traditional Medicare with a separate Prescription Drug Plan is a better option.

To find out more information about Medicare options, visit Medicare.gov or learn about Medicare costs for 2011.

Miles Walker is a freelance writer and blogger who usually looks at car insurance comparison deals over at CarinsuranceComparison.Org. His most recent review looked at car insurance NJ.

Sometimes your premium will increase because the insurance company has revised its rating plan. On other occasions, your premium will increase because characteristics about you have changed since your last renewal. Some of these changes in characteristics are within your control, such as purchasing a new vehicle or causing accidents, while others are not as much in your control, such as getting older or being struck by a natural disaster. When your premium has increased, you may wish to contact your insurance company or agent. The insurance company or agent will be able to explain why your premium has increased and also help you determine if you can do anything to lower your costs.

Your insurance company or agent should never tell you that your premium increased because the Ohio Department of Insurance approved the increase. Instead, your insurance company or agent can explain whether or not a new rating plan was approved by the Ohio Department of Insurance, and what element or elements caused your premium to change.

I you feel your insurance premium increased incorrectly, you can file a complaint with the Ohio Department of Insurance by calling 1-800-686-1526 or online at www.insurance.ohio.gov. A Department representative will take your information and contact the company to determine whether or not the premium is correct.

How can I reduce my insurance premiums?
There are number of things you can do to reduce your insurance premium, such as:
1. Shop around!
2. Consider raising deductible.
3. Drive safely.
4. Make improvements to your home.
5. Add smoke detectors, alarm system, etc.
6. Live a healthy lifestyle.
7. Bundle policies. (for instance, you may receive discounts if you purchase your homeowners and auto insurance from the same company)

You should discuss cost savings opportunities and your options with your insurance agent. For more information on how to save on insurance premiums, call the Ohio Department of Insurance at 1-800-686-1526 or visit www.insurance.ohio.gov.

That is correct. Having a policy doesn’t automatically guarantee you are protected for what may occur. Let me give you an example. Recently a small business owner contacted one of our agents to receive a competitive quote on her business coverages in the hopes of saving money on premium expense. A prudent thing to do in this economic climate. After conducting a thorough assessment of they business and it’s operations, the agent discovered the policy she had was not structured to cover her business vehicles for certain activities relating to her business. Her exposure to liability was wide open had she been involved in an accident during the course of her daily routine. That is a bad thing! Unfortunately, her former agent was not thorough.

The good news is, nothing happened before our agent was able to restructure her benefits with a different carrier to cover her business assets and activities appropriately. To add icing on the cake, her coverage limits were doubled and she reduced her premiums forty percent (40%) due to the competitive bid assessment. The moral of the story is make sure your policies are structured to do what you need them to do when bad things happen. Mistakes and oversight can ruin your business.

Douglas Fellows
American Insurance Strategies