Amendments to the Social Security Act enacted in 1965 established a broad
program of health insurance, known popularly as “Medicare,” for people age 65 or
older, including railroad workers and members of their families.
Part A provides hospital insurance and related benefits financed through payroll
taxes. Part B provides medical insurance benefits on a voluntary basis, with the
cost shared by the participants and the Federal Government. Both parts of the
program have been modified and liberalized several times since 1967, principally
in the 1973 extension of coverage to persons under age 65 who are totally
disabled or have permanent kidney failure. In 2003, legislation was enacted
which provided prescription drug coverage for Medicare beneficiaries beginning
in 2006, among other changes.
Persons covered by the railroad retirement system participate in the health
insurance program on the same basis as those under the social security system.
Amendments to the railroad retirement laws in 1965 and to the social security
laws in 1972 gave the Railroad Retirement Board an important role in the
administration of the health insurance program and made possible the collection
of hospital insurance taxes on the same basis as retirement taxes under the
Railroad Retirement Tax Act. The 1965 amendments also empowered the Board to
make payments from the Railroad Retirement Account for hospital insurance
services provided anywhere in Canada to persons receiving or qualified to
receive railroad retirement benefits. Such payments apply only to the charges in
excess of the amounts payable for hospital and related services under Canadian
public health insurance laws.
Social security legislation in 1972 gave the Board direct legislative authority
to collect Medicare premiums from railroad retirement beneficiaries and to
select a carrier to process medical insurance claims for all railroad retirement
beneficiaries. Previously, authority in these areas had been delegated to the
Board by the Social Security Administration.
Eligibility
All railroad retirement beneficiaries age 65 or over and other persons who
are directly or potentially eligible for railroad retirement benefits are
covered by the program. Although the age requirements for some unreduced
railroad retirement benefits are rising just like the social security
requirements, beneficiaries are still eligible for Medicare at age 65. Coverage
before age 65 is available for disabled employee annuitants who have been
entitled to monthly benefits based on total disability for at least 24 months.
There is no 24-month waiting period for those who have ALS (Amyotrophic Lateral
Sclerosis), also known as Lou Gehrig’s disease. If entitled to monthly benefits
based on an occupational disability, and the individual has been granted a
disability freeze, he or she is eligible for Medicare hospital insurance 29
months after the freeze date. If receiving benefits due to occupational
disability and the person has not been granted a disability freeze, he or she is
generally eligible for Medicare hospital insurance at age 65. The standards for
a freeze determination follow social security law and are comparable to the
medical criteria for granting total disability. Disabled widow(er)s under 65,
disabled surviving divorced spouses under 65, and disabled children may also be
eligible.
Medicare coverage before age 65 on the basis of permanent kidney failure is also
available to employee annuitants, employees who have not retired but meet
certain minimum service requirements, spouses, and dependent children who suffer
from permanent kidney failure requiring hemodialysis or a kidney transplant. The
Social Security Administration has jurisdiction of Medicare for those eligible
on the basis of permanent kidney failure.
Part A and Part B Enrollment
If a retired employee or a family member is receiving a railroad retirement
annuity, enrollment for both hospital and medical insurance is generally
automatic and coverage begins when the person reaches age 65. Even though
enrollment is automatic, an individual may decline medical insurance, if so
desired; this does not preclude him or her from applying for medical insurance
at a later date. Premiums may be higher if enrollment is delayed.
If an individual is eligible for but not receiving an annuity, he or she should
contact the nearest Board office before attaining age 65 and apply for both
hospital and medical insurance. (This does not mean that the individual must
retire if presently working.) The best time to apply is during the 3 months
before the month in which the individual reaches age 65. He or she will then
have both hospital and medical protection beginning with the month age 65 is
reached. If the individual does not enroll for medical insurance in the 3 months
before attaining age 65, he or she can enroll in the month age 65 is reached or
during the next 3 months, but there will be a delay of 1 to 3 months before
medical insurance is effective. Individuals who do not enroll during this
Initial Enrollment Period may sign up in any General Enrollment Period (January
1 - March 31 each year). Coverage for such individuals begins July 1 of the year
of enrollment.
Premiums for medical insurance are increased 10 percent for each 12-month period
the individual could have been, but was not, enrolled. However, individuals age
65 or older who wait to enroll in Part B because they have group health plan
coverage based on their own or their spouse’s current employment may not have to
pay higher premiums because they may be eligible for special enrollment periods.
The same special enrollment period rules apply to disabled individuals, except
that the group health insurance may be based on the current employment of the
individual, his or her spouse, or a family member.
Individuals deciding when to enroll in Medicare Part B must consider how this
will affect eligibility for health insurance policies which supplement Medicare
coverage. These include “Medigap” insurance and prescription drug coverage and
are explained later in this chapter.
For information on enrollment before age 65 on the basis of disability,
potential applicants should contact the nearest Board office. For information on
coverage for kidney disease, a Social Security office should be
contacted.
Explanation of Hospital Insurance Benefits
(Part A of Medicare)
The hospital insurance program is designed to help pay the bills when an
insured person is hospitalized. The program also provides payments for required
professional services in a skilled nursing facility (but not for custodial care)
following a hospital stay, home health services, and hospice care.
Benefits under this program cover medically necessary care in hospitals and
skilled nursing facilities, home health visits and hospice care. Coverage also
includes blood, after the first three pints, when the person is an inpatient at
a hospital or skilled nursing facility during a covered stay.
There is a limit on how many days of hospital or skilled nursing care Medicare
helps pay for in each “benefit period.” A benefit period begins the day a
patient goes to a hospital or skilled nursing facility. It ends after a person
has not received any hospital or skilled nursing care for 60 days in a row.
There is no limit to the number of benefit periods a person can have.
Benefits are ordinarily paid only for services received in the United States or
Canada. Hospital insurance also covers hospital stays in Mexico under very
limited conditions.
What Medicare Part A Covers
- If a patient is hospitalized, Medicare will pay for all covered hospital
services during the first 60 days of a benefit period except for a deductible.
From the 61st through the 90th day, Medicare hospital insurance pays for all
covered services except for a coinsurance charge. A lifetime reserve of 60
days may be used if a patient is in the hospital for more than 90 days in a
benefit period; the patient pays a coinsurance charge for these additional
days. Covered hospital services include almost all those ordinarily furnished
by a hospital to its patients. However,
payments will not be made for private-duty nursing or personal comfort items.
Inpatient psychiatric hospital services are covered, but there is a lifetime
limitation of 190 days.
More information on specific services is
available here:
Toll Free: |
1-800-MEDICARE
(1-800-633-4227) |
TTY/TDD: |
1-877-486-2048 |
Website: |
www.medicare.gov |
|
At the website select "Find
Out What Medicare Covers".
- Under certain conditions, the cost of skilled nursing care in a facility
approved by Medicare for services of a professional level (not custodial care)
is covered for the first 20 days in each benefit period plus up to 80
additional days with the patient paying a coinsurance charge for the 21st
through the 100th day. These benefits are payable only if the patient was in a
hospital for at least 3 days in a row, not counting the day of discharge,
before transferring to a skilled nursing facility.
- Under certain conditions, Medicare pays the cost of medically necessary
home health care. This is limited to reasonable and necessary part-time or
intermittent skilled nursing care and home health aide services as well as
physical therapy, occupational therapy, and speech-language therapy which are
ordered by a doctor. It also includes medical social services, durable medical
equipment (such as wheelchairs, hospital beds, oxygen, and walkers), medical
supplies, and other services.
- Hospice care is a service provided to
terminally-ill persons. It includes drugs for symptom control and pain relief,
medical and support services from a Medicare-approved hospice, and other
services not otherwise covered by Medicare.
Financing
Railroad employers and employees each pay hospital insurance taxes with their
railroad retirement taxes. The hospital insurance tax on each is 1.45 percent on
all earnings.
Explanation of Hospital Insurance Benefits
(Part B of Medicare)
The medical insurance program is designed to help pay the bills for doctors’
services and for a number of other medical costs not covered by the hospital
insurance program.
The medical insurance program is voluntary, but eligible persons who wish to
participate pay a monthly premium. For persons who are receiving railroad
retirement benefits (including those also in receipt of social security
benefits), the monthly premium is deducted from their railroad retirement
checks; others make payments or, in some cases, have their premiums paid under a
State assistance program.
The medical insurance plan covers physicians’ services, outpatient medical and
surgical services, and many other medical and health services in and out of
medical institutions.
There is an annual deductible for Part B services. After the deductible is paid,
Medicare will generally pay 80 percent of the approved charges for covered
services during the rest of the year; the beneficiary is responsible for paying
the remaining 20 percent of the cost.
Medicare provides basic protection against the high cost of illness, but it will
not pay all health care expenses. Some of the services and supplies Medicare
cannot pay for are custodial care, such as help with bathing, eating, and taking
medicine; dentures and routine dental care; most eyeglasses, hearing aids and
routine examinations to prescribe or fit them, and long-term care (nursing
homes).
What Medicare Part B Covers
Medical and Other Services
Doctors’ services (not routine physical exams), outpatient medical and surgical
services and supplies, diagnostic tests, ambulatory surgery center facility fees
for approved procedures, and durable medical equipment are usually covered.
Clinical Laboratory Services
Blood tests, urinalysis, and some screening tests can be covered.
Home Health Care
This is limited to reasonable and necessary part-time or intermittent skilled
nursing care and home health aide services as well as physical therapy,
occupational therapy, and speech-language therapy ordered by a doctor, and some
other services.
Outpatient Hospital Services
This includes hospital services and supplies received as an outpatient as part
of a doctor’s care.
Blood
Part B helps pay for blood as an outpatient or as part of a Part B covered
service.
Preventive Services
These include bone mass measurements, cardiovascular screening, colorectal
cancer screening, diabetes services, glaucoma testing, screening mammograms, Pap
test and pelvic examination, prostate cancer screening, and shots (Flu,
Pneumococcal and Hepatitis B) and a one-time “Welcome to Medicare” physical
examination.
Many other services are covered. More information on specific services is
available here:
Toll Free: |
1-800-MEDICARE
(1-800-633-4227) |
TTY/TDD: |
1-877-486-2048 |
Website: |
www.medicare.gov |
|
At the website select, “Find Out What Medicare Covers".
Medical insurance generally does not pay for services outside the United States.
There are rare emergency cases where medical insurance can pay for care in
Canada or Mexico.
Financing
Part B medical insurance is paid for in part by premiums from persons who
enroll in the program. Some individuals also pay premium surcharges because they
enrolled late for Part B. Beginning in 2007, the premium will increase for
individuals with annual incomes of more than $80,000, and for couples with
annual incomes of more than $160,000.
Medicare Plan Choices
Medicare beneficiaries have choices for receiving health care services. The
Original Medicare Plan is the traditional fee-for-service Medicare plan that is
available nationwide. A beneficiary can see any doctor or provider who accepts
Medicare and is accepting new Medicare patients. Or a beneficiary can choose a
Medicare Advantage Plan. In limited instances, other Medicare Health Plans may
be available. To find out which plans are available in an area:
Toll Free: |
1-800-MEDICARE
(1-800-633-4227) |
TTY/TDD: |
1-877-486-2048 |
Website: |
www.medicare.gov |
|
At the website select "Compare Health Plan Options in Your Area".
A beneficiary must have both Medicare Part A and Part B to join a Medicare
Advantage Plan, and the individual must live in the plan’s service area. Under
Medicare Advantage, a beneficiary may pay lower copayments and receive extra
benefits.
Original Medicare Plan
Under the Original Medicare Plan, patients visit the hospital, doctor, or
health care provider of their choice who accepts Medicare patients. Medicare
pays a set percentage of the expenses, and patients are responsible for certain
deductible and coinsurance payments.
Persons enrolled in the Original Medicare Plan who want prescription drug
coverage must join a Medicare Prescription Drug Plan as described on the next
page, unless they already have drug coverage from a current or former employer
or union that is at least as good as the standard Medicare prescription drug
coverage.
When a patient receives hospital insurance benefits, he or she is billed by the
hospital only for the deductible amount, any coinsurance amount and any
noncovered services. The remainder of the bill from the hospital, as well as
bills for services in skilled nursing facilities or home health visits, is sent
to the intermediary selected to serve the area.
Claims for medical insurance benefits filed on behalf of railroad retirement
beneficiaries in the Original Medicare Plan are generally handled by the Board’s
carrier on a nationwide basis:
Palmetto GBA
Railroad Medicare Part B Office
P.O. Box 10066
Augusta, GA 30999-0001
1-800-833-4455
|
Medigap
Many private insurance companies sell insurance to help pay
for services not covered by Medicare. This kind of insurance is called “Medigap”
for short. Policies may cover deductibles, coinsurance, copayments, health care
outside the United States and more. Generally, individuals need Medicare Part A
and Part B to enroll. A monthly premium is charged.
When someone first enrolls in Medicare Part B at age 65 or older, he or she has
a
6-month “Medigap open enrollment period.” During that time, the individual has a
right to buy the Medigap policy of his or her choice regardless of any health
problems. The company cannot refuse a policy or charge the individual more than
all other open enrollment applicants. If an individual does not buy a policy
when first eligible, the cost may go up or the desired policy may not be
available.
More detailed information about Medigap policies is available in the publication
Choosing a Medigap Policy: A Guide to Health Insurance for People with Medicare,
available:
Toll Free: |
1-800-MEDICARE
(1-800-633-4227) |
TTY/TDD: |
1-877-486-2048 |
Website: |
www.medicare.gov |
|
At the website select “Find a Medicare Publication".
Medicare Advantage Plans
Medicare Advantage Plans are available in most areas of the country. A
beneficiary must have both Medicare Part A and Part B to join a Medicare
Advantage Plan, and the individual must live in the plan’s service area. In
2006, Medicare Advantage Plan choices include regional preferred provider
organizations (PPOs), health maintenance organizations (HMOs), private
fee-for-service plans and others. A PPO is a plan under which a beneficiary uses
doctors, hospitals, and providers belonging to a network; beneficiaries can use
doctors, hospitals, and providers outside the network for an additional cost.
Under Medicare Advantage, a beneficiary may pay lower copayments and receive
extra benefits. Most plans include prescription drug coverage.
For those in a Medicare Advantage Plan, information on out-of-pocket costs is
available:
Toll Free: |
1-800-MEDICARE
(1-800-633-4227) |
TTY/TDD: |
1-877-486-2048 |
Website: |
www.medicare.gov |
|
At the website select “Compare Health Plan Options in Your Area".
Prescription Drug Coverage
The 2003 Medicare legislation provided a prescription drug benefit for
Medicare beneficiaries beginning in 2006. Medicare is contracting with private
companies to offer this drug coverage. These companies offer a variety of
options, with different covered prescriptions, and different costs.
Beneficiaries pay a monthly premium, a yearly deductible and part of the cost of
prescriptions. Those with limited income and resources may qualify for help in
paying some prescription drug costs.
Medicare prescription drug plans are voluntary. To enroll, individuals must have
Medicare Part A and/or Part B. Beneficiaries can first join starting November
15, 2005, through May 15, 2006, or until 3 months after the month their Medicare
coverage starts, whichever is later. There may be a higher premium if an
individual doesn’t join
a Medicare drug plan when first eligible. In most cases, there is no automatic
enrollment to get a Medicare prescription drug plan. Individuals enrolled in
Medicare Advantage Plans will generally get their prescription drug coverage
through their Plan.
More information about Medicare prescription drug plans is available in the
publication Your Guide to Medicare Prescription Drug Coverage. The
Medicare and
You handbook lists the Medicare prescription drug plans available in a
beneficiary’s area. Free personalized information is available on the Web or by
calling the Medicare toll-free number. Free personalized counseling is also
available from the local State Health Insurance Assistance Program (SHIP) and
other local and community-based organizations.
Appeals
If a patient disagrees with a decision on the amount Medicare will pay on a
claim or whether services received are covered by Medicare, he or she has the
right to appeal the decision. Under the Original Medicare Plan, the notice
received from Medicare stating the decision made on a claim tells a patient what
appeal steps can be taken. This information is also in Medicare Advantage Plan
materials.
Advance Directives
Individuals have the right to make a health care “advance directive.” This
directive contains written instructions stating the person’s choices for health
care or names someone to make those choices. The instructions are to be used if
the person is unable to make his or her own health care decisions. Laws
governing advance directives vary from State to State.
Other
Medicare Publications
A handbook, Medicare & You, is mailed to Medicare beneficiary households each
fall by the Centers for Medicare & Medicaid Services. It describes the Medicare
benefits, costs and health service options available.
Medicare for Railroad Workers and Their Families,
(Form RB-20) provides general
information on Medicare and is available at any Board field office.
Help Lines / Web Sites
Medicare Toll-Free Number and Web Site
Toll Free: |
1-800-MEDICARE
(1-800-633-4227) |
TTY/TDD: |
1-877-486-2048 |
Website: |
www.medicare.gov |
|
Palmetto GBA Toll-Free Number and Web Site
|