What is Medicare?
Medicare is a health insurance program offered by the US federal government. This program cover individuals aged 65 or older and young adults with disabilities. Some people confuse Medicare with Medicaid. The difference between these is that coverage of Medicaid plan is for individuals with less income. Whereas Medicare is for the ones who have retired or individuals with qualifying disabilities.
Parts of Medicare and its Cost
Medicare plan has four parts that include:
- Part A and B that makes original Medicare
- Part C called Medicare Advantage
- Part D for prescribed drug plan
In a Medicare plan, Part A pays for medical services. The plan is free if you or your spouse has paid Medicare taxes for at least 10 years.
Part B provides coverage for doctor visits and other services related to outpatients and comes with monthly pricing. The standard premium has risen from approx—$ 144 in 2020 to $148 in 2021.
Part D deals with prescribed medications and comes with a monthly pricing plan that depends on the chosen plan. The average premium for this part is approx—$ 30 per month. In addition to premiums, you may also incur co-payments, out-of-pocket costs, and other deductibles.
Explaining the Parts
Part A and B – Original Medicare
Original Medicare includes Part A and B in which hospital (A) and medical insurance (B) are present. The hospital insurance covers typical expenses such as semi-private rooms, nursing facilities, home health care, etc. It also covers meals or any other medical service you receive while hospitalized.
Part B covers all the outpatient services and also visits by a doctor who can be a primary care physician or a specialist. The cost covers include preventive care, lab tests, diagnostics, and ambulance rides. It is also essential to know that Part B covers medical expenses taking place inside a hospital.
Part C – Medicare Advantage Program
Depending on your healthcare needs, you might seek a Medicare program that offers better coverage with benefits. If such a situation applies to you, then you become eligible for Medicare Advantage Program. This program is health coverage that you purchase from any private insurance company. The company has authorizations to sign you up for any additional coverage for qualifying Medicare plans.
Advantage program provides benefits such as routine dental, vision or hearing care, and other wellness advantages.
Part D – Prescription Drug Coverage
Medicare Part D is a prescription drug coverage that reduces the cost of medication. You have the option to purchase this plan separately or in combination with Medicare Advantage Program.
- The first requirement is an individual with citizenship or residential status. If you are a permanent legal resident, you must have lived in the country for at least five years consecutively.
- Age 65 or older (young adults if they have any qualified disability).
The explanation mentioned above is only the summary of the plans available to you. As you approach the eligibility for the insurance, you have to review all the options for coverage. You can book an appointment with our representative by clicking HERE and filling out the form. Alternatively, you can call us at 919-944-4515 and speak to our support agent.