Medicare Parts Explained 2018
Medicare is a federal program that’s not always easy to understand. You might know about the enrollment window before your 65th birthday, but how much do you understand about the different parts? Medicare Part A through D might sound like an unusual way to organize health insurance, but it’s not as complicated as it sounds.
Medicare can feel intimidating at first if you’re not sure what steps to take. You know you need the right coverage, but how do you wade through the different parts? This guide will help you make sense of it all. Keep reading as we break down the different parts of Medicare so you can feel confident when your 65th birthday rolls around.
Medicare Part A
You can think of Part A as your room and board. This covers your hospital stays. If you need to stay overnight in the hospital or in a skilled nursing facility, Medicare Part A will kick in its coverage. This doesn’t cover things like lab tests and many of the care you’ll receive in these facilities, but it’ll cover all boarding expenses.
One thing to consider in addition to Part A is hospital indemnity insurance. This type of insurance, also known as Hospitalization Coverage, is a supplemental plan that gives you certain financial benefits when you stay overnight. Medicare doesn’t cover all of your expenses, and you’ll still be expected to contribute funds for things that are out-of-pocket. Indemnity insurance can help fill these gaps and ease the financial strains of hospital stays. Review this guide to learn more: Hospital Indemnity Insurance: What You Need to Know | HealthMarkets.
Medicare Part B
Part B is known as traditional Medicare. This is your outpatient coverage for medical treatments like office visits, lab tests, surgeries, and diagnostic tests. These costs are fixed by the government, and you don’t always have the freedom to see a doctor of your choice. Overall, Medicare Part B is a way to achieve affordable health care as you age, but it’s not the only way.
Many patients opt for Medicare Part C instead, which allows more flexibility in cost, providers, and coverage. It will be up to you to decide which plan suits your projected medical expenses as you age. If Medicare is your primary insurance at age 65, it’s definitely a must.
Medicare Part C
Also known as Medicare Advantage, these plans pay instead of Medicare, and they’re optional. This is a low-cost alternative to Medigap (or supplemental insurance) plans. Medicare Part C is through private insurance companies. You can choose your network of providers within an HMO or PPO plan.
You’ll still have co-pays for doctor visits, hospital stays, and specialty services, but you’ll likely have a lower premium than traditional Medicare. These plans can also come equipped with a Part D drug benefit, but we’ll discuss that later. Once again, you’ll need to consider your individual costs and needs to determine if Medicare Advantage is a better option for you.
Medicare Part D
Part D is your prescription drug coverage. You’ll have a number of plans to choose from depending on your state, and these run at around $34 a month. Because there are different drug options between plans, you’ll need to use a plan finder to see which medications are offered at different prices. These costs can change every year, so don’t be afraid to shop around.
Medigap
Medigap is also sometimes called Medicare supplements, and these pay for things that aren’t included in traditional Medicare plans. Medicare only pays for 80% of your health costs so Medigap can cover that remaining percentage. Some even go so far as to cover your Part A and B deductibles.
There are a lot of Medigap options so you can choose what makes sense for your medical history and estimates. You’ll have more freedom in physicians and providers, but they do cost more than most Medicare Advantage plans because they include more comprehensive coverage. Medigap coverage is optional, but it can be a great choice for a larger safety net.
Final Thoughts
This breakdown above is a great introduction to the world of Medicare. As you approach your golden years, you want to make sure you’re taking the best care of your health. While, in a perfect world, you wouldn’t need to utilize any of the plans above, sometimes things are out of our control.
The different parts and options in Medicare work together to offer comprehensive, flexible coverage that is affordable to all. The sooner you’re able to prepare for your 65th birthday, the more successful you’ll be in choosing a plan that’s right for your health needs.
This is a guest post by Wendy Dessler
Wendy Dessler is a super-connector who helps businesses find their audience online through outreach, partnerships, and networking. She frequently writes about the latest advancements in digital marketing and focuses her efforts on developing customized blogger outreach plans depending on the industry and competition.
