Medicare is a federal health insurance plan that is available to Americans who are 65 years of age or older. In addition, Medicare is also available to those who have certain chronic health conditions and disabilities. The program offers coverage to millions of people in America. In this article, we’ll explore a few important Medicare basics.
Parts of Medicare
Medicare Part A
Medicare Part A, also called hospital insurance, offers coverage for services that people receive when they’re admitted to a hospital or other inpatient facility. People may have to pay a premium for Part A coverage based on their income level. There are also coinsurance fees and deductibles to meet.
Medicare Part B
Medicare Part B, also called hospital insurance, offers coverage for outpatient diagnostic, treatment, and preventative services related to health conditions. There is a monthly premium and annual deductible to cover. People may also have to pay coinsurance costs. Together, Part A and B are called Original Medicare.
Medicare Part C
Medicare Part C, also called Medicare Advantage, offers the coverage of Original Medicare and covers additional things like prescription drugs, vision, hearing, and dental. Medicare Part C is offered and sold by private insurance companies. People who opt for Part C will need to pay monthly premiums.
Medicare Part D
Medicare Part D is a prescription drug coverage plan that helps cover the cost of medications. It’s an optional addition to Original Medicare that one can choose to add on when they sign up for Medicare coverage. People who sign up for Part D coverage will need to pay a separate premium, deductible, and copayment for this plan.
Medigap
People who are Medicare-eligible may want to consider Medigap. Medigap is also called Medicare supplemental insurance, and it can help cover some of the out-of-pocket costs that will come with Original Medicare. In general, Medigap plans are available only to people who are 65 or older, but some states allow younger people to purchase a Medigap plan if they have been diagnosed with a chronic condition that could cause future health care expenses. One thing to keep in mind is that once a person enrolls in a Medigap plan, they must stay enrolled for the entire year.
