Important Information About Medicare

Retirees 65 years old and older are eligible to apply for Medicare. Although this coverage typically doesn't cover a person’s entire healthcare needs, many seniors sign up for it because it's often available at a lower cost than non-Medicare health insurance plans. In addition, other types of low-cost supplemental Medicare coverage options are available for anything not covered under the primary Medicare options.

Medicare is broken out as Parts A and B, C and D. Many seniors may not understand the full scope of their Medicare options based on these letter designations. They also don't always understand their low-cost supplemental insurance choices. Below we’ve outlined the basic information consumers should know about the different Parts of Medicare.

Parts A and B – Original Medicare

These Medicare areas cover approximately 75-80% of all inpatient and outpatient care. Parts A and B are considered “standard” or “original” Medicare. Part A covers admission to a medical facility for treatment and hospital visits. Part B covers treatment at facilities where the senior does not stay overnight, such as a family doctor's office or physical therapy facility. It also covers some outpatient treatment procedures.

Part C – Medicare Advantage

Seniors who desire additional coverage under Medicare have the option to enroll in Part C instead of Parts A and B. Part C offers the ability to choose one of several “private” plans, known as Medicare Advantage plans, that are made available through private sector insurance companies (which the government subsidizes). With Part C, seniors receive a higher level of coverage that usually includes certain types of dental and vision care. Some plans also offer varying degrees of brand name and generic drug prescription coverage.

Part D – Prescription Drug Coverage

The government offers prescription drug coverage under different Part D plans through pre-approved private insurance carriers; the level of coverage depending on the particular Part D plan/s. It is a separate supplemental choice for seniors that enroll in Parts A and B. Seniors that need prescription drug coverage don't have to worry about health or income restrictions when applying for Part D. Those who meet certain low-income requirements can even apply for assistance through the Social Security Administration to cover the cost of the plan.

Additional Supplemental Coverage – Medigap Plans

Any area of healthcare not covered under Medicare Parts A and B, C and D is referred to as a “gap” in coverage. Medicare supplemental plans provided by private insurance carriers are known as “Medigap” plans. As with non-Medicare private insurance, seniors have a lot of coverage choices, and they can pick and choose the level of coverage that best suit their needs and budget. Seniors must pay premiums on time by designated dates to continue to receive coverage.