Parts of Medicare
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Part A - Hospitalization
As long as you have worked 10 years, or for 40 quarters, you receive this part for free. There is a deductible for most people, but PART A does not cost a person any money. The Deductible for this is $1556 in 2022.
Part B – Doctor’s
This part covers doctor visits, procedures, treatment, etc. For most people for the 2022 year, the cost is $170.10 per month. This is taken right out of your social security check. This part of Medicare covers 80% of your medical bills. There is no maximum out of pocket.
Part C – Medicare Advantage
This is called Medicare Advantage. We will talk about this later.
Part D – Drug Coverage
This is your drug coverage. Everyone is required to have this, or there is a penalty of 1% for each full month without credible coverage. This lasts the rest of your life.
- Cheaper Monthly Premium
- Includes a drug plan
- May include some extra benefits not tied to Medicare
- More out of pocket costs if you see doctors
- Can change year to year
- May be limited on who and where you can be seen
- Easier to budget Monthly expenses
- Can see anyone who accepts Medicare
- Can never lose coverage unless premiums are not paid.
- Paying very little to doctors out of pocket.
- More expensive premiums than a Medicare Advantage
- No drug plan included
- Can increase yearly
What are your options once you get Medicare Parts A/B?
- Absolutely Nothing!
- Take out a stand alone drug plan and keep Medicare only. Remember, Medicare is an 80/20 plan, which means you are responsible for 20% of what Medicare covers, and there is no cap. (You are responsible for 100% of what Medicare does not cover)—If you do not take a drug plan out and you do later on, you will be penalized 1% of the national average drug cost per drug pla per month you do not have a drug plan for the rest of your life (About 35 cents every month).
- To take out a part C, called a Medicare Advantage, such as a Humana, BCBS, UHC. This becomes your primary insurance now, and sets co-pays, maximum out of pocket costs, helps control the 20% of Medicare you are responsible for paying.
- Take out a supplement and a drug plan. A Medicare Supplement will pay your portion of Medicare that you are responsible for paying.
- Keep your coverage from your workplace if it is available.