Whether your 65th birthday is on the horizon or decades away, you should understand the parts of Medicare – what they cover, and where they come from.

Medicare was created in 1965 as a national health insurance program for seniors. It was made up of two original components, Part A and Part B.

Part A = Hospital Insurance

National Health Insurance Program for Seniors

It provides coverage for inpatient stays at medical facilities. It can also help cover the costs of hospice care, home health care, and nursing home care – but not for long, and only under certain parameters.

Part B = Medical Insurance

Part B Covers:

• Physical Therapy
• Physician Services
• Medical Equipment
• Medical Services

Part B is medical insurance and can help pick up some of the tab for physical therapy, physician services, expenses for durable medical equipment (scooters, wheelchairs), and other medical services such as lab tests and varieties of health screenings.

Keep in mind, Part B isn’t free. You pay monthly premiums to get it along with a yearly deductible. The premiums vary according to the Medicare recipient’s income level.

Part C = Medicare Advantage

Part C Covers:

• Prescription Drug Coverage
• Vision
• Dental

Part C are medicare advantage plans. Insurance companies offer these Medicare-approved plans. Part C plans offer seniors all the benefits of Part A and Part B and more: many feature prescription drug coverage, vision and dental benefits. To enroll in a Part C plan, you need have Part A and Part B coverage in place.

Medigap

Addresses Gaps in Part A & B Coverage

Medigap Covers:

• Copayments
• Coinsurance
• Deductibles

Medigap plans address the gaps in Part A and Part B coverage. If you have Part A and Part B already in place, a Medigap policy can pick up some copayments, coinsurance, and deductibles for you.

Part D = Prescription Drug Plans

While Part C plans commonly offer prescription drug coverage, insurers also sell Part D plans as a standalone product to those with Original Medicare.

Visit Medicare.Gov for More Info

I hope this helps to demystify medicare a bit. There is a lot more to know about these plans but this should be enough to get you started in the right direction. If you need more information be sure to visit Medicare.Gov.

Sources:

1. This material was prepared, in part, by MarketingPro, Inc.
2. mymedicarematters.org/coverage/parts-a-b/whats-covered/
3. medicare.gov/coverage/skilled-nursing-facility-care.html
4. medicare.gov/your-medicare-costs/part-b-costs/part-b-costs.html
5. tinyurl.com/hbll34m
6. medicare.gov/sign-up-change-plans/when-can-i-join-a-health-or-drug-plan/when-can-i-join-a-health-or-drug-plan.html
7. medicare.gov/supplement-other-insurance/medigap/whats-medigap.html
8. ehealthinsurance.com/medicare/part-d-cost
9. medicare.gov/part-d/coverage/part-d-coverage.html
10. medicare.gov/sign-up-change-plans/when-can-i-join-a-health-or-drug-plan/five-star-enrollment/5-star-enrollment-period.html