Medicare Basics

Medicare has 4 parts: Part A - Inpatient, Part B - Outpatient, Part C - Medicare Advantage and Part D - Prescription Drug Coverage

Part A is all inpatient services including: hospital, skilled nursing, home health and hospice services.  There is not premium if someone has worked the equivalent of 10 years and paid into Social Security.

Part B includes all medical services on an outpatient basis like doctor office visits, therapies, treatments and testing, home health care, durable medical equipment and many preventive services.  There is a monthly premium for Part B and most people pay $174.70/month. People pay more if they are high wage earners and some people pay less if they qualify for Medicaid.

Part A & Part B are considered "Original Medicare" and are managed through the Social Security Administration.

Part D covers prescription drugs. Rather than getting coverage through Social Security, Part D Rx plans are purchased from a private company that has contracted with Medicare to offer Part D prescription drugs.  This can be a "stand alone" prescription drug plan to accompany a Medicare Supplement plan or can be part of a Medicare Advantage plan. If someone fails to get Part D on time, there may be a Late Enrollment Penalty (LEP).

Part C is Medicare Advantage plans. These are private companies that contract with Medicare to offer a health plan that includes all Medicare Part A and Part B services, often cover Part D and usually offer more services like vision and dental.  Medicare Advantage plans vary by where you live and may include a monthly premium.