Understanding the different parts of Medicare

Three Key Medicare Decisions

“While not an overly complicated benefit, initially signing up for Medicare can be an overwhelming and anxiety-inducing process” according to John S. Traynor | Jun 16, 2021 quoting from his article: https://www.wealthmanagement.com/retirement-planning/three-key-medicare-decisions
  • Part A (hospital coverage) covers things like inpatient hospital stays, some home health care, skilled nursing facility care and hospice; requires no out-of-pocket annual premiums; but has both annual deductibles and copays.
  • Part B (medical coverage) covers things like doctor visits, outpatient services, X-rays and lab tests, as well as preventive screenings; carries both annual deductibles and copays; and requires monthly premium payments.
  • Part C (Medicare Advantage) is a private all-in-one alternative to Medicare that covers the services associated with Parts A and B (and usually Part D). On the plus side, these bundled plans tend to be more affordable and may offer broader coverage (for example, vision, hearing and dental. Providers must be Medicare-approved. But the plans typically come with greater restrictions, and most plans act as HMOs and require plan participants to go to their network of doctors and health care providers.
  • Part D (prescription drug coverage) is an optional add-on prescription drug coverage that requires monthly premiums, annual deductibles and copays. Your client will need to enroll in an approved plan and be covered under both Medicare Parts A and B (or Part C).
  • Medigap is offered by private insurers to help fill any coverage gaps in Part A and Part B such as copayments, coinsurance, deductibles and potentially foreign travel health emergencies. There are 10 different types of Medigap plans—some cover more out-of-pocket costs than others.

Source: Financial Planning for Women