Medicare Basics: What Are The Parts?

Insurance Blog

There are so many options when it comes to Medicare. Should you get an advantage plan? What about a supplemental? Are your medications covered on your Part D plan? Have you worked enough for Part A? While only someone working with you directly can answer these questions for you, a basic understanding of Medicare and how it works can only help. Here are a few basics about Medicare to know before seeing a Medicare specialist. 

Part A

Medicare Part A is your hospital insurance. If you have worked over 10 years (or 40 quarters) at a company or business that pays into medicare payroll taxes, you are covered. The problem comes when someone has not worked long enough to get their "work credits". Even just a little time shy of 10 years can add up to an expensive monthly bill. Everyone must have part A since this covers most of your hospital expenses. 

Part B

Medicare Part B is your outpatient and medical coverage. For example, if you have a cold and go to a doctor, 80% of that bill will be covered by Part B. There is a monthly premium for part B, which is $135.50 for 2019. This premium is required whether or not you have an advantage plan since advantage plans do not replace original medicare, but are purchased on top of these fees.

Part D

Part D of Medicare is what helps you to pay for the cost of your prescription drugs. Medications can be quite costly, and consequently many people find it extremely helpful to have a Part D plan.

Medicare Advantage Plans

An advantage plan is a way to help with part B and Part D costs. Instead of having to pay 20% of all your doctor bills, advantage plans break down the remaining costs into manageable copayments. For example, if you got a bill for $1000 after an outpatient operation, Original Medicare would cover $800, leaving you with a $200 bill. However, some Advantage plans may have a copayment of just $75 for an outpatient surgery. 

In conclusion, the more you know the better off you are. Take the time to really study your situation, your budget, and your needs for health insurance before you make any major decisions. Always check with your doctor to make sure that they accept your plan before you agree to anything.

For more information about Medicare, contact a Medicare insurance provider.

13 September 2019