Alabama Medicare Program works in much the same way as in other states. Traditional Medicare, also known as Original Medicare, consists of Medicare Part A and Medicare Part B, which cover hospitalizations and medical expenses. A separate prescription drug plan, Part D, provides coverage for medications. Medicare Advantage plans (Part C), which combine the benefits of Part A and B, often bundle in additional services such as dental and hearing coverage.
Alabama Medicare Advantage plans are offered by private insurance companies with a Medicare contract. They can include the benefits of Part A and Part B in a single plan, offering lower copayments and a choice of providers. Some Advantage plans are designated by a letter of the alphabet, while others cater to specific populations and conditions, such as diabetes or cardiovascular disease. Annual Enrollment Periods are held each fall from October 15 through December 7, when you can make changes to your Medicare Advantage plan.
Alabama residents can also sign up for a stand-alone Medicare Part D prescription drug plan, which covers medications that you take at home. Private insurance companies offer these plans and can help you pay your Part A and Part B out-of-pocket costs. If you need help choosing a plan, you can find free counseling services through the Medicare Savings Program or SHIP (State Health Insurance Program). The enrollment period for Medicare Advantage and Medigap plans in Alabama is from 3 months before your 65th birthday to 3 months after it.
Alabama Medicare Income Limits 2024
In Alabama, like many other states, individuals are subject to income and asset limits when they apply for long-term care Medicaid. However, there are strategies that seniors can use to help them remain below these limits and qualify for long-term care Medicaid.
Individuals mustn’t give away or sell assets for less than fair market value before applying for Nursing Home Medicaid or a Medicaid Waiver. The state of Alabama has a 5-year Look-Back Period that reviews all asset transfers and can penalize individuals by delaying their eligibility for long-term care Medicaid.
In Alabama, most types of income are counted towards Medicaid’s asset limit, including employment wages, alimony payments, Social Security benefits, stock dividends, and IRA withdrawals. However, the state does exempt certain assets, such as the combined face value of life insurance policies and prepaid funeral contracts.
The State of Alabama has chosen to pursue estate recovery for nursing home and HCBS coverage. Any assets transferred or given away before applying for Medicaid are subject to a 60-month look-back period. The asset transfer or gift amount is compared to the cost of care.