What is Medicare

What is Medicare Exactly?

The Medicare bill was signed in 1965. Since then, this national health insurance program has provided coverage for those 65 and older and those with specific disabilities under age 65. Hospital coverage and outpatient medical coverage are included within the program. Hospital coverage is known as Medicare Part A, and outpatient medical coverage is known as Medicare Part B. These two parts make up Original Medicare. Since Original Medicare Parts A and B do not cover all costs for approved services, there are additional policies you can purchase.

Part A of Medicare

Part A will provide some coverage for your room and board when you are an inpatient in the hospital. Additionally, Medicare Part A offers some coverage for home health care, skilled nursing facility stays, and hospice care. However, you are responsible for the $1,556 (in 2022) deductible per benefit period and copayments and coinsurance.

Most people will pay $0/month for Medicare Part A because they paid Medicare taxes while they worked. However, if you did not work at least 40 quarters in the U.S., you will have a monthly premium for Part A.

Part B of Medicare

Outpatient medical services such as doctor visits, physical therapy, tests, lab work, surgeries, emergency care, and more are covered by Part B. Additionally, certain drugs administered in an outpatient setting and durable medical equipment are covered under Medicare Part B. Medicare Part B pays 80% of the costs once the Part B annual deductible is met. You are responsible for paying the deductible and the 20% coinsurance.

There is a standard base premium of $170.10 in 2022. However, you can pay more if you are a high-income earner.

Medicare Part C

Medicare Part C is not part of Original Medicare. It is another name for Medicare Advantage plans, an alternative option to Original Medicare. You must be enrolled in Parts A and B to enroll in a Part C plan. Your plan will manage your care, and you’ll have copays and coinsurance for approved services.

Medicare Part D

Medicare Part D provides prescription drug coverage since Original Medicare does not cover pharmacy drugs. You would want to pair a Part D plan with Original Medicare for more comprehensive coverage.

Conclusion

There are services not covered by Medicare, so you’ll want to research your options before enrolling in Medicare.