Medicare Parts

Medicare is available in four parts – A, B, C and D – each with its own level of services. Additionally, there is Medicare Supplement Insurance, or Medigap, which is not Medicare but a private policy that works with your Medicare policy to supplement your healthcare costs.

Medicare Part A, in general, covers hospitalization, skilled nursing facility care, hospice care and some home-health services. This part is offered through the federal government with no premiums for most American citizens if they or their spouses paid Medicare taxes for a certain amount of time while working.

Medicare Part B pays for medically necessary services, mental health services, physician’s services, outpatient care, medical supplies, durable medical equipment, ambulance services and some preventative screenings and services. This part is offered through the federal government and is combined with Part A. Part B does have premiums.

Medicare Part C is also known as Medicare Advantage Plans. These plans are offered through private insurance companies and premiums are charged. These companies contract with Medicare to provide Medicare A and B benefits plus benefits and services not covered under A and B. They may offer extra coverage, like vision, hearing, dental or health and wellness programs. Also, many Part C plans offer prescription drug coverage (so if you have your Medicare through Part C, you won’t need Medicare Part D). With Medicare Part C, you typically are part of a Health Maintenance Organization (HMO), a Preferred Provider Organization (PPO), a private fee-for-service plan, a special needs plan, or a Medicare Medical Savings Account (MSA) Plan.

Medicare Part D covers prescription drugs. It is an add-on to Parts A and B. As with Part C, Part D is offered through private companies approved by Medicare and there is a premium. Be aware that there is a penalty for late enrollment.