If you are confused about how Medicare works, you certainly are not alone. Then when you throw into the mix Medicare Supplement, Medicare Advantage, and Part D plans, it's enough to make anyone's head spin. I'd like to review the four Medicare Parts - Part A, Part B, Part C and Part D, to help you get a brief understanding concerning Medicare. Once you know how the different Parts of Medicare works, it will help you to decide what your next steps are, such as purchasing a Medicare Supplement Plan to fill in some"gaps."
Part A- Hospital
Part A covers Hospital and Skilled Nursing. If you are an inpatient in a hospital, Medicare Part A insurance will cover most of your hospital bills. You will be responsible for a deductible perhaps a per day co-pay. It's because of some of these "gaps" in coverage that many seniors purchase a Medical Supplement Plan.
Part B- Medical
Medicare Part B basically covers everything else outside of a hospital. Medical care such as doctor visits, specialist visits, lab work, diagnostic work, outpatient surgery, physical therapy-all these medical needs are covered under Medicare Part B. There is an annual deductible and you are responsible for 20% of all these bills. Again, it is because of these potential out of pocket expenses that many people purchase a Medicare Supplement Plan. That 20% could add up to a lot of money.
Part C- Medicare Advantage
This is your Medicare Advantage plans. Unlike Medicare Supplement Insurance, where the plans are standardized by Medicare, Medicare Advantage Plans are provided by private insurers. These insurance companies design their own plans. Thy decide on the premium, co-pays, deductibles, etc. It is usually an HMO or sometimes a PPO plan.
Part D- Prescriptions
Part D is also offered by private insurance companies. This is your prescription drug benefit. Many plans have an upfront deductible and there are also co-pays. Depending on how expensive your prescriptions are, you may fall into the dreaded "donut-hole." In 2011, if you are in the "donut hole" most brand name prescriptions will be subsidized 50%. You are able to have a separate Medigap Plan along with a Part D plan.
So there you have it, the different Parts of Medicare A,B,C,D. Do not confuse the Medicare "Parts" with the various Medicare Supplement "Plans." Medicare Plans are Supplemental to Original Medicare Part A and Part B.
Part A- Hospital
Part A covers Hospital and Skilled Nursing. If you are an inpatient in a hospital, Medicare Part A insurance will cover most of your hospital bills. You will be responsible for a deductible perhaps a per day co-pay. It's because of some of these "gaps" in coverage that many seniors purchase a Medical Supplement Plan.
Part B- Medical
Medicare Part B basically covers everything else outside of a hospital. Medical care such as doctor visits, specialist visits, lab work, diagnostic work, outpatient surgery, physical therapy-all these medical needs are covered under Medicare Part B. There is an annual deductible and you are responsible for 20% of all these bills. Again, it is because of these potential out of pocket expenses that many people purchase a Medicare Supplement Plan. That 20% could add up to a lot of money.
Part C- Medicare Advantage
This is your Medicare Advantage plans. Unlike Medicare Supplement Insurance, where the plans are standardized by Medicare, Medicare Advantage Plans are provided by private insurers. These insurance companies design their own plans. Thy decide on the premium, co-pays, deductibles, etc. It is usually an HMO or sometimes a PPO plan.
Part D- Prescriptions
Part D is also offered by private insurance companies. This is your prescription drug benefit. Many plans have an upfront deductible and there are also co-pays. Depending on how expensive your prescriptions are, you may fall into the dreaded "donut-hole." In 2011, if you are in the "donut hole" most brand name prescriptions will be subsidized 50%. You are able to have a separate Medigap Plan along with a Part D plan.
So there you have it, the different Parts of Medicare A,B,C,D. Do not confuse the Medicare "Parts" with the various Medicare Supplement "Plans." Medicare Plans are Supplemental to Original Medicare Part A and Part B.
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