Medicare – A Quick Breakdown

Since medicare open enrollment is quickly approaching (October 15th), I thought now would be a good time to start talking about it.  I know most of us aren’t even close to being eligible for medicare (age 65).  But our parents might be and if they’re not sure how to navigate the system, it’d be nice if we were informed enough to help them.

So, first things first.  Did you know that Medicare has multiple parts that cover different things?  I didn’t, up until a few years ago.

Here’s a quick breakdown of all the different parts and what they cover.

Part A – Hospital Insurance (hospital bills)

  • Home health care
  • Hospice care
  • Inpatient hospital care (meals, hospital room, nursing services)

Part B – Medical Insurance (doctors’ bills)

  • Physician care
  • Laboratory tests
  • Physical therapy
  • Rehabilitation services
  • Preventative services
  • Annual check-up

Parts A & B make up “Original Medicare.”

Part C – Medicare Advantage*

  • Medicare-covered services available through private health plans, such as HMOs,
    PPOs, and private fee for service plans

Medigap – Supplemental Insurance*

  • Pays for things that Parts A & B won’t cover:
    • Deductibles
    • Co-payments
    • Anything beyond what the doctor has agreed upon with Medicare

*You can have Part C or Medigap but NOT both!  Medigap is the more popular choice.

Part D – Prescription Plan (medication)

  • Prescription drugs

This is just a very brief intro to Medicare.  Eventually I’ll cover topics like when you’ll need to enroll in Medicare, the different Medigap plans available and how to find the best Medigap and Part D plan for you.

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