If you’re getting ready to retire, you should start brushing up on the parts of Medicare. There are four Medicare parts in total, and it’s important to know what each one entails before you start dotting the I’s and crossing the T’s on your paperwork.
We’re just going to cover the bare-bones basics in this article to give you a solid foundation and help simplify things going forward. Understanding this basic information first will help you put together a comprehensive Medicare plan at a cost that is most affordable to you.
Four Parts of Medicare
There are four parts to Medicare that apply to every individual who enrolls in the program. Those (creatively named) parts include:
- Part A – Inpatient and Hospital Services
- Part B – Doctor and Outpatient Services
- Part C – Medicare Advantage
- Part D – Stand-Alone Prescription Drug Coverage
Part C is a whole different animal compared to Medicare’s other three parts – but it includes the same benefits as the first two parts of Medicare and usually also helps with prescription drug costs, and offers additional benefits Medicare doesn’t cover.
Medicare Part A
Part A has benefits in place to help beneficiaries as you pay for inpatient hospital care and similar services. In addition to hospital care, Part A helps pay for:
- Hospice care if you have been diagnosed with a terminal condition
- Home health care and home health aid services
- Skilled nursing facilities
Beneficiaries who’ve worked at least 40 quarters consecutively during their employment years will not have to pay a monthly premium for Part A. But you’ll have a deductible to pay per benefit period if you require care, as well as coinsurance costs which will vary based on the length of your hospital stay.
Medicare Part B
Part B basically encompasses regular doctor visits. This includes doctor care and durable medical equipment. Part B also helps cover the costs of outpatient procedures like simple surgeries and physical rehabilitation.
=Part B costs a monthly premium which varies based on your income. However, most beneficiaries pay the standard premium. Part B also comes with an annual deductible.
After you meet your deductible, you’ll have a coinsurance payment which costs 20% of your Medicare-approved cost of treatment.
Medicare Part C
Part C is also known as Medicare Advantage. It’s a completely separate health plan compared to the other three Medicare parts. Part C starts off by covering the exact same benefits that Part A and B do.
In addition, to covering the same benefits as Traditional Medicare, most include drug coverage. These plans also include additional benefits in most cases. The additional benefits could include dental, vision, hearing, gym memberships, and more.
Part C plans work like the typical health insurance policies you have when you were working. These plans are managed by private health insurance companies like Humana, or Aetna, not the government. Premiums are usually low and in many areas, zero-premium plans are offered.
In order to be eligible for a Medicare Advantage plan, you must be enrolled in both Part A & Part B. You still have to pay your monthly premium for Part B in addition to your premium for Part C.
Medicare Part D
Part D is also managed by private providers, but it’s endorsed and regulated by the government. You pay a monthly premium that varies based on where you live and which provider you choose. These plans are required to follow the four-phase structure outlined by the Centers for Medicare and Medicaid Services.
Recipients who are on expensive prescriptions may fall into what is known as the Part D donut hole. But once you hit a certain annual out-of-pocket expense cap, emergency coverage will kick in and discount your medications to a more manageable level until the first of the next year.
What parts are known as Traditional Medicare?
Tradition Medicare refers to Part A and Part B. These parts cover your inpatient hospital and your doctor and medical services.
What’s the difference between Medicare Parts C and Part D?
Part C is an all-in-one plan that combines the benefits of Parts A, B, and in most cases D. In addition to the basic benefits, these plans offer additional coverages and benefits that Traditional Medicare doesn’t
Part D is stand-alone prescription coverage.
Is Medicare Advantage and Medicare Part C the same thing?
Yes! Medicare Advantage is another name for Part C. These are all-in-one plans that include Medicare Parts A, B, and D benefits in one plan.
Is Medicare Part A and Part B free?
No, If you have worked at least 40 quarters, which is 10 years, or are married to a spouse that has, you’ll qualify for premium-free Part A benefits. Part B has a standard premium that most people have to pay.
Help with Understanding Medicare and Your Options
Many people need additional assistance with understanding how Medicare works. There are a few paths and a ton of choices. We’re here to help guide you and ensure that you understand and can make the best decision for you.
Our agents are experts when it comes to all aspects of Medicare. They’re standing by to educate and help walk you step by step through the process.
Give us a call today!! If now isn’t a good time, fill out our online request form and one of our specialists will reach out to you!