Understanding Medicare: An Easy Guide
The problem is simple. When we hit 65, most of us have never had to purchase an individual health insurance plan because we were covered by employer-sponsored insurance.
And, signing up for Medicare can feel daunting because not all of us are aware of how insurance works. Understanding Medicare helps you to understand the system and know what to expect as you explore plan options. To help you out, we’ve put together some important aspects of Medicare that can benefit you. Read on to learn more.
Understanding Medicare Basics
If you are over 65 and are an American or a legal permanent resident, you’re eligible for Medicare. It’s a Federal health insurance plan that provides health benefits. Medicare has four parts. PART A is hospital insurance and covers inpatient care in a hospital, hospice, or a skilled nursing facility. PART B is medical insurance that covers doctor’s visits and lab tests and outpatient care. PART D covers prescription drugs. And Part C also known as Medicare Advantage offers the coverage that Original Medicare offers, and can even cover extras like vision, dental, and hearing.
Understanding Medicare Costs for These Parts
-Medicare Part A
This part is free for a majority of people, but some people have to pay for this coverage.
-Costs for Part B
Medicare Part B is based on your takeaway income. People who earn higher incomes pay more for Medicare. If your income has decreased, you can choose to file a reconsideration request.
-Costs for Part C
Part C plans are offered by private health insurance companies, so you will need to compare features, benefits, and costs of different plans and pick one that offers decent coverage at an affordable price.
-Costs for Part D
Medicare Part D has varying premiums. Beneficiaries may pay more due to their income, as mentioned for Part B. Most US states have more than 20 different Part D plans to pick from.
What is Part D?
Medicare Part D is a federal program that provides private insurance to Medicare beneficiaries to cover prescription drugs. This flexible, federally subsidized insurance program gives beneficiaries more control over their health care choices while saving the government billions of dollars per year.
Part D plans have different drug formularies. Be sure to choose one that offers your medications at decent prices.
