Medicare Explained

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.

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