Back to the basics – what exactly is Medicare and its 4 parts, A, B, C and D? Medicare was established by the federal government as a health insurance program for people age 65 and older. The program does not cover all medical expenses or the cost of long-term care. Each person is eligible for Medicare at age 65 regardless of Social Security retirement benefits eligibility. Medicare is broken down into 4 parts – A, B, C &D.
Medicare Part A
Part A covers inpatient hospital stays, hospice care, home health care and skilled nursing facilities. This portion of Medicare is considered “free”. You can qualify for it without paying premiums if you receive or are eligible for Social Security retirement benefits. Although you do not pay a premium, there is a yearly deductible and some co-pay requirements.
Medicare Part B
Part B covers outpatient hospital care, physicians’ bills, ambulance services, lab tests, x-rays, durable medical equipment and some prescription drugs. This coverage is intended to pay for preventative care to help maintain health and prevent worsening of certain conditions or illnesses. Part B typically pays 80% of the approved amount for covered services.
Part B is optional and each recipient is charged a monthly premium as well as an annual deductible. The amount owed as a monthly premium depends on the cost of living at the time you enroll.
Medicare Part C
Part C is referred to as Medicare Advantage. Anyone enrolled in Part A and B can choose to receive all of their medical services through a private insurance company. You purchase the benefits through private companies approved by Medicare.
Medicare Part D
Part D is the optional prescription drug coverage plan available to anyone eligible for Medicare. You will pay a monthly premium, yearly deductible and a co-payment.
Medigap
There are supplemental plans sold by private companies to assist in paying for portions of care not covered by Medicare.
Understanding all the benefits available as you enter your retirement years is essential to proper planning. At Stouffer Legal, we can help you determine your goals and develop a comprehensive retirement and estate plan. You can schedule an appointment by calling us at (443) 470-3599 or emailing us at office@stoufferlegal.com.
