What is Medicare? How do the parts work? Can I get help?
Only about 12% of Americans receive advice about Medicare, when 50% expect to receive it.
There are 4 parts when it comes to Medicare: Part A, Part B, Part C (advantage), Part D (prescription).
Part A has no additional monthly premiums and covers hospital stays (Inpatient Coverage)
Part B will typically have a monthly premium and covers doctor’s visits and tests (Outpatient Coverage)
Consequently, Part A + Part B = 80% of all medical costs. Medicare Explained!
Advantage Plans or Part C = Medicare Advantage (provides benefits to Part A and B, offered by private companies)
Medicare Part D = Prescription drug coverage
Fill in the gap?
In order to cover the 20% not covered by Medicare Parts A & B, a Medicare supplement plan (Medigap) should be purchased. These are plans you purchase separately from traditional Medicare coverage. Typically these plans offer the most comprehensive coverage to Medicare.
A little Medicare History
The government created Medicare because senior citizens weren’t able to find quality healthcare at an affordable cost. As a result, President Lyndon B Johnson signed the program into law on July 30, 1965. Initially, it only included Medicare Part A and Part B. Commonly referred to as “Original Medicare.”
Over the years, this federal program has expanded to cover more people, including the disabled or have end-stage renal disease.
In 2003, regulations allowed private insurance companies to provide Medicare Parts A and B through the purchase of a Medicare Advantage plan. Part D, the prescription portion of Medicare, was added in 2006. Generally the program does not under go massive structural changes.