Medicare is complicated and sometimes very confusing! What do all the different parts mean, and who handles them? This overview might help.
- Medicare Part A is managed by the federal government. It helps cover hospital care, nursing facility care, hospice care, and some home health care. There is usually no monthly premium for Medicare Part A. Sometimes known as “hospital insurance” and is a part of Medicare’s Original Medical Plan.
- Medicare Part B is also managed by the federal government. It helps cover doctor visits and outpatient care like lab tests and medical equipment. It may also cover some preventative care. There is usually a monthly premium for Medicare Part B. This is also a part of Medicare’s Original Medical Plan.
The Original Medicare Plan coverage stops here. You can add Medicare Part D (prescription drug coverage) by purchasing a prescription drug plan from a government-approved private insurance company.
- Medicare Part C is offered by government-approved private insurance companies. This is an alternative to the Original Medicare Plan. It combines Part A and Part B; some Part C plans also include prescription drug coverage (Medicare Part D). Monthly premiums, deductibles, and co-payments vary from one plan to another.
- Medicare Part D is offered by government-approved private insurance companies. This helps cover prescription drug costs. It can be added to the Original Medicare Plan (Parts A and B) or may be available with Part C. Costs can vary from one plan to another.
- Medigap is supplemental coverage offered by private insurance companies who have NOT been approved by the government. This plan helps cover costs not covered by the Original Medicare Plan (Parts A and B). Medigap is ONLY available with the Original Medicare Plan and is not available to people who choose Medicare Part C.
Medicare Advantage Plans are offered by government-approved private insurance companies and combine Parts A, B, and often D. Medicare Advantage Plans may also come with other benefits, like vision, hearing, and dental coverage. Premiums, co-payments, and deductibles can vary from one plan to another.
Medicare is a complicated entity, but hopefully this primer helped explain some of the basics!