Medicare and you: What being eligible really means

When you enroll in Medicare, your medical costs will be partially paid by the federal government. In general, Medicare pays 80 percent of the services it covers and you are responsible for the remaining 20 percent -- and there's no "out-of-pocket maximum." That means there's no limit to your 20 percent liability. So if your Medicare-approved medical bills for example, a hospital stay and surgery total $50,000, then Medicare will pay $40,000 (80 percent), your responsibility is $10,000. And so on, with any other medical expenses you incur. And since Medicare doesn't cover prescription drugs, you are responsible for 100 percent of the costs. 

That is why Medicare allows private insurance companies to offer Medicare supplement (Medigap) plans, prescription drug plans (Medicare Part D), and Medicare Advantage (Part C) plans to Medicare enrollees. 

Point One is your one point to turn to when you become eligible for Medicare at age 65 or have questions about your current Medicare plan. Our friendly agents are here to help you understand your options and find the best plan or plans for you.