New Medicare cards are in the works that will no longer display your Social Security number, but don’t expect to receive a new one anytime soon. Although the legislation was signed into law in 2015, the federal Health and Human Services Department (HHS) has four years to issue revised cards to new Medicare beneficiaries and another four years to issue new cards to existing beneficiaries.
The first two Medicare cards were issued to former President Harry Truman and his wife Bess under Original Medicare established in 1965 as a social health insurance program administered by the Federal government in partnership with private insurers.
Now that Medicare Advantage (called Part C) entered the picture in 2003 as a private Medicare health insurance option, there is much confusion on the difference between the two programs when signing up for Medicare.
It’s important to think of your Original red, white and blue Medicare AB card as your passport to be protected at all times. Mine is protected by a plastic covering and I carry it with me. Others make a color copy and black out the last 4 digits on their card in case their wallet or purse is stolen.
When you join a private Medicare Advantage program the insurance company must offer a plan that includes the same benefits had you remained in Original Medicare.
Your guaranteed entitlement benefit rights are now managed b y a private insurance company. The company issues you their new card. Your original AB-Passport card is no longer needed and can be kept in a safe place at home.
Medicare was designed as an entitlement program with built in payroll taxes you or a spouse pre- pay for the Part A hospital benefit while employed and then pay no hospital premium when you become eligible for Medicare.
When you join a private plan, you must also pay the monthly premium for Part B (doctors), and may pay an additional premium with the private insurance provider depending on which plan you choose.
Crossing over to the private Advantage side becomes more complicated because the payment rules, multiple payer plan options and benefits received differ in the way each plan is structured. Private insurers may offer up to 18 different plans.
The Federal government provides tax payer funds to the private insurance company to administer the program for each beneficiary. The insurance company manages your health plan with their rules, and pays health providers directly based on differing contractual payment arrangements.
In most cases you need only one private insurance card for your doctors, hospital and prescription needs.
If you remain in Original Medicare, you don’t give up your AB-Passport card but use it when you need hospital or doctor care because you are enrolled in a single payer plan that covers these services with a stated benefit a mount Medicare will pay depending on the type of care received.
This arrangement is a partnership with private insurance companies who administer the claims for CMS (Centers for Medicare & Medicaid services); provide supplemental insurance for the 20 percent of costs not paid by the Original Medicare plan and offer private prescription plans.
With Original Medicare you have three cards in your wallet or purse. Your hospital and doctor health providers use your AB Passport card to bill Medicare directly for the service. Medicare pays their 80 percent and sends the 20 percent due to your Supplement insurance carrier who pays your providers the remaining balance.
You use your Part D prescription card at your pharmacy.
Most new beneficiaries eligible for Medicare have no way of knowing which program to pick, (Original or Private) because they seldom receive the comparison information of each plan to make a good decision.
We do that for you based on your wish list. Once you complete our benefit preference form and tell us which benefits are most important, we present the option that meets your needs and tell you why by comparing the features of both the Original and private plans.
Our coach program is the first of its kind in the nation because we focus on process and not product. By allowing us to help, you will become less anxious, more relaxed and enjoy peace of mind knowing we are working for you
