Medicare is structured to be customized for you. There are two main pieces of Medicare coverage. It consists of the original plan and supplemental policies. To avail Medicare, you must be 65 years and above. If you’re 65, check whether you’re receiving Social Security benefits or not. If you are, then you don’t need to worry about signing up for Medicare, it will be automatically done for you. For others, here’s what you need to know:
Original Medicare
The original plan consists of two parts: Part A (Hospital Insurance) and Part B (Medical Insurance).
Of the two, Part A is a must. It covers inpatient hospital stays, care in a skilled nursing facility, hospice care, and health care. Think of it as the “just in case” part of Medicare. Usually, there’s still a deductible and coinsurance and/or copayments, but there are supplements to help with those fees.
Part B is Medical Insurance, which includes doctor visits, equipment like wheelchairs, outpatient care, medical supplies, and preventative tests and screenings. You have a choice to opt-out of this part. Decide early on if you need Part B, as you will have to pay the premium even if you don’t use the services covered by the insurance.
Medicare Supplement Plans
There are three major types of Medicare Supplements. The first is a Medicare Advantage Plan (Part C). This alternative to Original Medicare is offered through private and approved health insurance companies. Each plan is required to at least match the benefits of Original Medicare but can include more.
Medicare Advantage Plans vary based on company and location, so make sure to do some research before signing up. Most types of Part C plans only cover doctors and hospitals within the plan’s network. You may incur higher out-of-pocket costs if you opt for services outside of the plan’s network.
The second type of supplement is the Medicare Prescription Drug Plan (Part D). It covers prescription drug costs, which can be beneficial to add to several different types of plans. Before signing up for Part D make sure your plan doesn’t cover prescription drugs.
Finally, there are Medicare Supplement Insurance (Medigap) policies. These policies help pay out-of-pocket costs like deductibles and coinsurance. Unlike other supplements, Medigap plans don’t have a specified part to cover. Instead, these plans help fill the gaps in medical bills that Medicare doesn’t cover. Medigap policies are standardized across the country except in Massachusetts, Minnesota, and Wisconsin.
Remember when choosing a plan that it all depends on your personal needs. The best resource is the Medicare website which provides a Medicare plan finder to ease the process.