Are you nearing your 65th birthday? Now what?

Parts of Medicare:  Let's take a look at the alphabet soup of letters and acronyms that make up Medicare & break them down so you can understand what each part covers and the associated costs for each.

Medicare Part A

Part A is also known as hospital insurance or inpatient insurance.  The easiest way to describe its benefits is to say it covers your room and board expenses if you are ever admitted as an inpatient to a hospital or skilled nursing facility.  It also covers hospice services and some home healthcare services.  

Most beneficiaries don't pay a premium for Part A. As long as you or your spouse have worked and paid Medicare taxes for ten or more years, you won't pay a premium for Part A.  However, they are other out-of-pocket costs like deductibles, copayments and coinsurance. 2024 Deductible= $1632.00

Medicare Part B

Part B does have a monthly premium and covers your outpatient insurance costs such as; doctor visits, preventive care, surgeries, lab tests imaging and durable medical equipment.  Each year, the Centers for Medicare and Medicaid Services (CMS) sets a standard premium  that most beneficiaries pay.  However, individuals and couples with higher incomes could pay a higher premium.  This additional amount in called the Income-Related Monthly Adjustment Amount or IRMAA.  You will also be responsible for an annual deductible, copays, and coinsurance cost. 2024 Premium= $174.70 and the Deductible is= $240.00

Part C

Part C is more commonly referred to as Medicare Advantage.  If you enroll in a Medicare Advantage plan, all of the coverages from Parts A and B will be wrapped into your Part C plan.  Instead of the federal Medicare program paying your medical claims, they'll be paid by the private insurance company that sold you the plan.  

Every Part C plan is required to offer at least as many benefits as Parts A and B, but most offer additional coverage.  Premiums and coinsurance costs vary by plan, but most Medicare Advantage plans have very low (if not $0) monthly premiums.  If you are interested in Medicare Advantage, you'll need to take the time to learn more about these plans before you enroll.

Part D

Part D offers prescription drug coverage.  You can get this coverage as a separate plan, or you may have it bundled into your Medicare Advantage plan.  Like Part C plans, Part D is offered by private insurance companies.

Each Part D plan has its own drug formulary, which is the list of medications it covers.  Each plan also has its own premium and cost-sharing amounts.  It's important to find a Part D plan that covers your current prescriptions at the lowest possible costs.