Parts of Original Medicare

Original Medicare - Part A

In addition to covering admitted hospital stays, Part A also covers care in skilled nursing facilities, home health services (if intermittent skilled nursing care is required), hospice care and the cost of blood during your hospital admission.  Most people do not pay a monthly premium for Part A.  If you are admitted to the hospital, a benefit period begins.  If that benefit period lasts less than 60 days, you'll be responsible to pay a $1,632 deductible. If your benefit period lasts more than 60 days, you'll start paying an amount per day.

Original Medicare – Part B

Part B covers many medical services not covered under Part A - doctor services, outpatient medical and surgical services, durable medical equipment such as oxygen and wheelchairs, certain home health care services for medically necessary skilled care, and many other services are covered under Part B. Most people pay a monthly premium of $174.70 for Part B in 2024.  Certain low income people might not need to pay that premium and some higher income people might pay more. Everyone with Part B and only Original Medicare is responsible for a yearly deductible of $240. Once you have met that deductible by your co-pays on Part B services, for the remainder of the year Medicare will pay 80% of your Part B costs and you'll be responsible for 20% of those costs.  It is that 20% responsibility that causes most people to look for additional insurance, either by buying a Medigap plan or by enrolling in a Medicare Advantage plan.

A person can delay enrollment in Part B when they turn 65 if they, or their spouse, has coverage through active employment.  Once that employment ends, you have eight months to enroll in Part B. COBRA and retiree coverage do not delay the eight month window to enroll. Also, people should not delay enrollment if they work for an employer with fewer than 20 employees, since that insurance coverage typically expects you to have both Parts A and B.  There is a late enrollment penalty for any person who could have enrolled in Part B but didn't sign up for it. The penalty is a permanent increase to your Part B premium.

Original Medicare – Part D Drug Coverage

Part D prescription drug plans are approved by Medicare but operated by private companies. There are two ways you can get this coverage - either through standalone Medicare prescription drug plans, often referred to as PDPs, or through a Medicare Advantage plan.  Most people will pay a monthly premium to be a member of the plan, a yearly deductible (which is typically just applied to more expensive prescription drugs), and copayments for your drugs when you actually get a prescription refilled.  If you have a gap of more than 63 days in your drug coverage, you could incur a penalty, which is a permanent increase to your monthly drug premium.