Medicare A & B Overview
Medicare is health insurance for people 65 and older, on disability, or with End Stage Kidney disease. There are 5 “parts” to Medicare, with the foundational ones being Parts A & B. Medicare Part A covers inpatient hospitalization, skilled nursing facility, home health, and other care. Medicare Part B covers doctors and outpatient medical care. When you have Medicare, Parts A & B work together to help you cover medical costs and get the care you need.
It is important to know that Medicare A & B does not cover all medical costs. You have deductibles and copays when you receive medical care. Even more important, you have no annual limits to your deductibles (Unless you have a Medicare Supplement or Medicare Advantage). This means that if you only have Parts A & B, your out of pocket medical bills are virtually unlimited. Medicare A & B also does not provide benefits for non medical care like; prescriptions, dental, vision, etc. The out of pocket costs and items not covered by Medicare A & B are often referred to as the “Gaps” in Medicare.
The Two Ways To Have Medicare
And Fill The Gaps So You Have Good Coverage
There are 5 parts of Medicare and two main ways to arrange them. You can either have Original Medicare directly through the government or a Private Medicare Advantage plan. If you have Original Medicare directly through the government you can supplement it with a Medicare Supplement and a Part D (prescription) plan. You cannot supplement Medicare Advantage, it is all inclusive. Here are what these two plan packages look like.
Package 1 – Original Medicare With Supplemental Insurance
- Medicare A & B coverage for hospitalization, doctors, & outpatient care.
- Medicare Supplement (Medigap) insurance to cover your deductibles & copays with Medicare A & B.
- Part D Prescription insurance for medication coverage at the pharmacy.
- You can also add dental, vision, & hearing coverage to your package.
Package 2 – Medicare Advantage (Part C)
- You receive coverage through a private insurer and a plan available in your zip code.
- Medicare Advantage replaces Original Medicare and becomes your coverage, it doesn’t supplement it.
- Medicare Advantage includes hospital and doctor coverage under parts A & B and may also include; Part D prescription, dental, vision, hearing aid, and other benefits in one plan.