MEDICARE ABCs
Basics
Medicare is a federal health insurance program for eligible beneficiaries 65 and older, and beneficiaries with a qualifying medical disability. There are four part to Medicare (Part A, Part B, Part C and Part D). Private companies have contracts with Medicare to provide to provide basic Medicare coverage, prescription drugs and some additional perks, like vision and dental. Most prescribers would only pay for Part B premium, which is $174.70 per month for 2024. This premium is almost always adjusted every year.
Medicare Part A
Medicare Part A covers hospital, skilled nursing, home health and hospice care. Not all of these services are covered and they are not fully covered. The standard Part A deductible for 2024 is $1,632.
Medicare Part B
Medicare Part B covers physician services, out patient services, durable medical equipment and other outpatient services. The standard premium for Part B is $174.10 per month for 2024. This premium is normally deducted from the Social Security benefits and is adjusted every year.
Part C
- Medicare Part C, also called Medicare Advantage Plans. These plans incorporate parts A&B of the original Medicare and often also include Part D (Prescription drug plan) into one plan. These plans are provided by private insurance companies contracted with CMS and must provide the same level of coverage as original Medicare. These plans are often free to the consumers and include extra benefits like dental, vision and health club memberships.
Part D
Medicare Part D refers to Medicare Prescription Drug benefits. There are some limitations and restrictions that affect prescription drug benefits. Consumers with original Medicare plans and Medicare supplement insurance plans need to enroll in Part D plans separately. Medicare part D is usually included in the Medicare Advantage Plans. Late enrollment in part D may incur penalties.
Medigap
Medigap or Medicare Supplement insurance Plans help cover some costs original Medicare (Part A and Part B) do not cover, like copayments, coinsurance and deductible. Medigap plans had additional monthly premium and do not cover prescription drug plans. Separate Part D insurance is needed for drug coverage.