The ABCs of Medicare: Know the Parts before You Start

Medicare is made up of Part A and Part B.

 

Part A = Hospital Insurance

Helps cover inpatient care in hospitals, skilled nursing facility care, hospice and home health care.

 

Part B = Medical Insurance

Helps cover services from doctors and other health care providers, outpatient and home health care.

 

Part B also covers many preventive services like screenings, shots or vaccines and yearly “Wellness” visits, as well as “DME” (durable medical equipment) such as wheelchairs, walkers, hospital beds and other equipment.

 

But wait — there’s more.

 

Part C = Medicare Advantage

Medicare Advantage is a Medicare-approved plan from a private company that offers an alternative to Original Medicare for your health and drug coverage. These “bundled” plans include Part A, Part B and usually Part D. In most cases, you’ll need to use doctors in the plan’s network. Plans may have lower out-of-pocket costs than Original Medicare and may offer extra benefits not covered by Original Medicare, such as vision, hearing and dental services.

Part D = Drug coverage

Helps cover the cost of prescription drugs, including many recommended shots or vaccines. You join a Medicare drug plan in addition to Original Medicare, or by joining a Medicare Advantage Plan with drug coverage. Plans that offer Medicare drug coverage are run by private insurance companies that follow rules set by Medicare.

 

Finally, there is gap coverage

 

Medigap = Medicare Supplemental Insurance

Helps pay out-of-pocket costs in Original Medicare (like your 20% coinsurance). Medigap is extra insurance available from private companies. Policies are standardized, and in most states named by letters, like Plan G or Plan K. The benefits in each lettered plan are the same no matter which insurance company sells it.  You can also have coverage from a former employer or union, or Medicaid.

 

 

Compiled from Medicare.gov