Medicare is a federal health insurance program for people 65 or older, certain younger people with disabilities, and people with End-Stage Renal Disease. It is divided into four parts: Part A (Hospital Insurance), Part B (Medical Insurance), Part C (Medicare Advantage), and Part D (Prescription Drug Insurance). Each part covers different services and has different costs associated with it. Understanding these parts is crucial for choosing the right coverage.
Part A covers inpatient hospital stays, skilled nursing facility care, hospice care, and some home health care. Most people don’t pay a monthly premium for Part A because they paid Medicare taxes while working. Part B covers doctor’s services, outpatient care, preventive services, and some home health care. There is a monthly premium for Part B, which can vary depending on your income.
Medicare Advantage (Part C) plans are offered by private insurance companies approved by Medicare. These plans combine Part A and Part B coverage and often include Part D coverage. Prescription Drug Insurance (Part D) helps cover the cost of prescription drugs and is also offered by private insurance companies approved by Medicare. Choosing the right Medicare plan depends on your individual healthcare needs and budget.
