Medicare is a federal health insurance program that was introduced in 1965 and has provided health insurance benefits at a reasonable cost to millions of Americans aged 65 and older as well as those living with disabilities.
Because of similar-sounding names, it’s easy to confuse Medicare and Medicaid. They are not the same thing. Each serves a different purpose. Medicaid is geared toward those in a lower income bracket or a certain state of poverty. Those who qualify for Medicaid benefit from further subsidized costs of care. Medicare, on the other hand, aims to provide health insurance to everyone else, and allows individuals across all economic demographics access to quality healthcare.
Private health insurance packages cover the needs of many working Americans. When they retire and no longer have access to health insurance through their employer, they turn to Medicare. There are other reasons for selecting this tried-and-true health insurance option. We’re going to focus on the top five.
Low Monthly Cost
The costs of Medicare are relatively low. For example, most people don’t pay a premium for Part A plans. The standard Part B premium was $174.40 (monthly) in 2024 but could have been higher depending on income. The same price diversity is encountered with Part C and Part D plans, but still provides a lot of coverage for the price. In 2024, the average cost for a health insurance plan is $505 monthly.
Different Coverage Options
While original Medicare comes with standard plans, there are a number of benefits included within a Medicare Advantage plan such as vision, hearing, and dental. Another coverage option for those enrolled in a Medicare plan is to combine Original Medicare with supplemental coverage as needed. Such coverage includes a Medigap policy that helps with the payment of any out-of-pocket costs associated with a policyholder’s care.
Flexible Monthly Premiums
For healthy adults who prefer lower premiums and are comfortable with managed care, monthly premiums can be as low as $0. For those who want deductible and copay coverage, monthly prices will rise to the high two-digits, into three-digit territory. However, opting for higher premiums is often a good idea for those who have higher medical expenses. In short, there is a lot of flexibility when it comes to how an individual goes about paying for their Medicare coverage.
Elevated Healthcare Standards
Given that Medicare is a government program, its implementation required a congressional improvement of healthcare standards. There is a good deal of legislation aimed at protecting individuals and providing them with the best care possible. The Centers for Medicare & Medicaid Services (CMS) is a federal agency within the Department of Health and Human Services that oversees these federal healthcare programs and continually updates policies and standards so that healthcare providers can rise to the level of desired care. For example, the Medicare Modernization Act of 2003 updated the practices that were embraced at the time for the benefit of Medicare enrollees.
Access to Prescriptions
Medicare Part D and Medicare Advantage prescription drug plans have seen increased enrollment every year since 2006. Now, over 33 million Americans (about 54% of those enrolled in Medicare) have good prescription drug benefits. In some cases, those enrolled in such plans have greater, more affordable access to prescription medications than those enrolled in standard health insurance plans.
When all is said and done, Medicare is a very successful program that has been providing needed healthcare benefits to millions for over half a century. Medicare benefits are continuing to improve while relative costs are going down. The future of Medicare looks bright.
PSECU offers Medicare consulting through our partner MedicareCU*. With just one phone call, you can start your Medicare journey whether you’re signing up for the first time or shopping for a plan to better suit your needs. Visit psecu.com/medicare Not a PSECU member? It’s easy to join. Apply here.
*Not all products and coverages are available in every state. Restrictions, exclusion, limits, and conditions may apply. Pennsylvania State Employees Credit Union (PSECU) has contracted with MedicareCU to offer Medicare education, enrollment assistance services, and insurance to PSECU members. PSECU does not warrant, guarantee, or insure any service or product offered by MedicareCU or its independent insurance agents/brokers. Insurance products are offered by MedicareCU and/or its independent insurance agents/brokers, which are separate entities from and not affiliates of PSECU. MedicareCU and its services are not affiliated with or endorsed by any government agency including, but not limited to, Medicare, the Centers for Medicare & Medicaid Services (CMS), the Department of Health and Human Services (DHHS). The policies offered by MedicareCU are not endorsed by the U.S. Government of the Federal Medicare program. Renewal premiums may increase periodically depending upon your age. PSECU members may also enroll in the plan through the CMS Medicare Online Enrollment Center located at http://www.medicare.gov. There is no additional cost or obligation to move forward after the initial consultation with MedicareCU. Medicare has neither reviewed nor endorsed this information. For a complete listing of plans in your area please contact 1.800.MEDICARE or consult www.medicare.gov (TTY users should call 1.877.486.2048), 24 hours a day/7 days a week or consult www.medicare.gov.