Medicare A, B, C and Ds
If you are confused about how Medicare works, you are certainly not alone. So, when you invest in the combined Medicare Supplement, Medicare Advantage and Part D plans, simply have someone’s head spin. I would like to review the four parts of Medicare: Part A, Part B, Part C and Part D, to help you get a brief understanding of Medicare. Once you know how different parts of Medicare work, it will help you decide what your next steps are, such as buying a Medicare supplement plan to fill in some “gaps.”
Part A- Hospital
Part A covers hospitals and skilled nursing. If you go to a hospital, Medicare Part A insurance will cover most of the hospital bills. You will be responsible for a deductible copayment, maybe per day. Because of some of these “gaps” in coverage, many older people buy a medical supplement plan.
Part B – Medicine
Medicare Part B basically covers everything else outside a hospital. Medical care, such as medical consultations, consultations with specialists, laboratory analysis, diagnosis, outpatient surgery, physiotherapy: all of these medical needs are covered by Medicare Part B. There is an annual deductible and you are responsible for 20% of all these accounts. Again, it is due to these possible expenses that many people buy a complementary Medicare plan. That 20% can add a lot of money.
Part C – Medicare Advantage
This is your Medicare Advantage plan. Unlike Medicare supplement insurance, where plans are standardized by Medicare, Medicare Advantage is provided by private insurers. These insurance companies design their own plans. You decide on the prize, partnerships, franchises, etc. It is usually an HMO plan or sometimes a PPO.
Part D – Prescriptions
Part D is also offered by private insurance companies. This is your benefit from prescription medications. Many plans have an initial deductible and there are also copays. Depending on the price of your recipes, you can fall into the dreaded “screw hole”. In 2011, if it is in the “screw hole”, most of the brand’s recipes will be subsidized by 50%. You can have a separate Medigap plan along with a Part D plan. There you have it, the different parts of Medicare A, B, C, D. Do not confuse the “Parts” of Medicare with the various “Plans” of the Medicare Supplement. The Medicare plans are complementary to the original Medicare Part A and Part B.