These brief Medicare definitions below will help you understand each part of the Medicare program and get you started toward choosing the option that is right for you!
Original Medicare comes in a couple different parts, A & B, and covers most of your expenses, but not all.
Medicare Part A:
Medicare Part A helps cover inpatient hospital care such as room and board, nursing staff, skilled care, limited home health, hospice and inpatient medication. Medicare Part A is generally premium free.
Medicare Part B:
Medicare Part B covers the medical side including the doctors, outpatient procedures, durable medical equipment, lab work, etc. Medicare Part B has a monthly premium and there is an annual deductible. After that, Medicare will generally pay 80% of approved charges and you are left with the remaining 20%.
Medicare Part C:
Medicare Part C is also commonly referred to as Medicare Advantage. A Medicare Advantage Plan is another way you can get Medicare coverage. These are private insurance companies that contract annually with Medicare to provide benefits to you. You are still in Medicare and still pay your Part B premium, but Medicare is not paying your claims. The plans must cover the same types of services that Medicare provides, but they do it in a different way. These plans may have lower monthly premiums, but will have co-payments or co-insurance for many of the services provided up to an annual out-of-pocket maximum.
Medicare Advantage Plans are NOT the same as Medicare Supplements/Medigap plans.
Medicare Part D:
Medicare Part D covers outpatient prescriptions, drugs that are self-administered. Private insurance companies contract annually with Medicare to provide you with drug coverage options. Learn more about Medicare Part D here: Medicare Part D Overview
Free Medicare Advice:
Hopefully these definitions will help you understand the different parts of Medicare so you can make a more informed decision for your healthcare needs. If you have Medicare questions or want to talk to one of our Medicare Specialists about a plan that is right for you, simply call us at 812-473-7271 to setup a free appointment today!