When it comes to Medicare benefits, it’s best to begin with the basics. The better you understand Medicare benefits and how they work, the better prepared you’ll be to evaluate your own needs and make sure you have the right plan. Medicare has four “parts”: A, B, C, and D.
Part A covers some, but not all, of the costs for inpatient hospital care. It also covers:
- Up to 100 days of care at a skilled nursing facility
- Some hospice care and home health care
At age 65, you’re eligible for Part A. You’ve probably already paid for Part A through payroll deductions during your working years. You’re responsible for copayments and a deductible.
Part B helps cover doctor’s visits and outpatient care. It also helps pay for some services Part A doesn’t cover, including some physical and occupational therapy services and some home health care- if these services are medically necessary.
You must sign up and pay a premium for Part B. If you don’t sign up when you first become eligible, at age 65, your Part B premium may be higher.
Part A and B together make up Original Medicare, also called traditional Medicare. Parts A and B cover a lot of the medical care you need, but not all of it. Some people buy a Medicare supplement, also called a “Medigap plan,” from a private insurer. These supplemental plans fill in many of the gaps that Parts A and B don’t cover.
Part C, better known as a Medicare Advantage plan, is available from private insurers that contract with Medicare. You must be enrolled in both Medicare Parts A and B to join a Medicare Advantage plan, which replaces Parts A and B and usually includes additional benefits. Several types of Medicare Advantage plans are available:
- HMO (Health Maintenance Organization)
- PPO (Preferred Provider Organization)
- PFFS (Private Fee-for-Service)
Part D is prescription drug coverage. Like Medicare Advantage plans, Medicare Part D is available only from private insurers through contracts with Medicare. You don’t get Part D automatically- you have to select it, either by itself or as a part of a Medicare Advantage plan.
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Jim Griffin
jimgriffin@moneyins.com
877-341-3342 |
