Health insurance is confusing to everyone, regardless of age. But as you get older and experience more health issues, it’s even more important to understand your options so as not to go bankrupt. Senior Medicare health care plans, for starters, are important to understand because they offer a lot of benefits to all US citizens 65 and over. Understanding the different senior Medicare health care plans can help protect your health, and your wallet.
Parts and Paths
There are four parts of Medicare plus an optional supplement to understand but essentially only two major options, which combine various parts, to consider.
Medicare Part A (aka Hospital Insurance) covers all or part of inpatient hospital care. It also covers some home health care, skilled nursing facilities, and hospice care. Most people are automatically included in Medicare Part A when they turn 65 because of the employment taxes they paid.
Medicare Part B (aka Medical Insurance) covers doctor’s visits, outpatient care, medical equipment, preventive services, and home health care. Part B coverage costs a monthly premium ($104.90 per month in 2014).
Medicare Part C (aka Medicare Advantage) provides the services of Parts A and B but through government approved private health plans, usually HMOs or PPOs. Enrollees will still need to pay the Part B premium and possibly an additional private insurance premium.
Medicare Part D (aka Drug Prescription Plan) helps pay for medications prescribed by your doctor.
Medicare Supplement Insurance (also known as Medigap Insurance) covers out of pocket expenses such as deductibles and co-insurance for those enrolled in Medicare parts A and B in order to fill in coverage gaps.
What all these parts boil down are two main options:
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The Traditional, aka Original, Medicare Program, which includes Part A Hospital and Part B Medical, with or without paying for Part D Drug Prescription Plan and Medical Supplement Insurance.
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The private insurance Medical Advantage Program that include Parts A and B services and usually prescription drugs in addition to benefits not typically covered by Traditional Medicare such as vision, hearing and dental.
Still confused about Medicare health plan options? Contact us to help you figure out the right Medicare parts to enroll in.
