There are several Medicare plans to choose from this year. It’s important to assess your medical needs and what you can afford. Fortunately, if you start a search online today, you can learn more about Medicare plans seniors should consider.
From the various Medicare plans to Medicare Advantage, there are many coverage options and they’re all worth exploring. Follow along as we break down each plan so you can find the perfect coverage for your needs and budget.
What is Medicare?
Medicare is a federal health insurance program for people who are 65 and older, people with End-Stage Renal Disease (ESRD), and for certain younger people with disabilities.1 To be eligible for Medicare you must fall in one of the above categories and you must also be a U.S. citizen or permanent legal resident.
Medicare Part A
Medicare Part A covers a variety of hospital services including inpatient care in a hospital.2 Part A also covers hospice care, short-term skilled nursing facility care, some home health care, and nursing home care.
Most people who have worked for 10 or more years won’t have to pay a premium for Part A. Although you may encounter some out of pocket expenses.
Medicare Part B
Part B covers two types of services: medically necessary services, and preventive services. This plan will cover things like ambulance services, durable medical equipment, mental health, clinical research, and limited outpatient prescription drugs. If you enroll for Part B, you will have to pay a monthly premium.
Original Medicare
Original Medicare, also known as Traditional Medicare is a fee-for-service health plan that consists of two parts, Medicare Part A (hospital insurance) and Part B (medical insurance). This is a popular plan for seniors because it covers the most necessary medical expenses.
Medicare Part D
Medicare Part D is a great plan that helps cover the costs of prescription drugs. Most private insurance companies offer Part D as an add-on to Original Medicare. Your drug coverage costs will vary based on several different factors, including things like if your prescription is on your plan’s list of covered drugs, what “tier” the drugs are in, and what pharmacy you use.
Medicare Advantage (Part C)
Medicare Advantage Plans also referred to as Part C or MA plans are an “all in one” alternative to Original Medicare. These plans are offered by private companies that are approved by Medicare.
How much you pay for Medicare Advantage Plans depends on a few different factors. You can learn more about these factors as well as get cost details on Medicare’s website.3
