Understanding The Medicare Basics
What is Medicare?
Medicare is health insurance for people 65 or older, people under 65 with certain disabilities, and people of any age with End-Stage Renal Disease. It ensures that all seniors have basic hospital insurance (Part A) at no cost to them. It also provides the option of medical insurance (Part B). Part A & Part B make up what is called Original Medicare. Part A comes at no cost to the senior. Part B does involve a monthly premium that’s generally automatically taken out of Social Security.
There are 4 parts of Medicare. These include Part A, B, C, and D. These are explained more in depth under Parts of Medicare.
- Part A – Hospital care
- Part B – Medical Insurance
- Part C – Medicare Advantage Plans
- Part D – Prescription drug coverage
The Need for Medicare Supplements or Advantage Coverage
The above Medicare structure covers the basics for some seniors, but leaves many with high out-of-pocket costs. Private insurance companies offer Medicare Advantage Plans and supplemental plans to alleviate the financial burdens imposed by relying solely on Part A & Part B for senior health care coverage.
These private plans charge a monthly premium and can offer coverage that protects financial assets in the event medical services needed are not covered by Original Medicare coverage. We work with many seniors and their families to understand Medicare options and provide cost breakdowns and comparisons so that they can make an informed and wise choice about Medicare plans and supplements when open enrollment hits.