Medicare 101

Medicare Made Easy

When you see the word "Medicare"  and the word "Part" with a letter behind know the Federal Government is involved in the benefit program. 

Medicare Part A

While you are working you are paying into the Medicare Trust fund by being taxed. This money goes toward paying for Medicare Part A. Medicare Part A covers hospitalization only. Part A has a deductible and copays you are responsible for. 

Medicare Part B

You are not automatically enrolled in Medicare Part B you must sign up and pay for it. The cost varies and can be income based. Medicare Part B covers doctors visits and out patient services. At no time does Medicare Part B cover you at 100 percent. There is a deductible and a 20 percent co-insurance. 

Medicare Part C

Medicare Part C is also know as the Medicare Advantage Program. You still pay for your Medicare Part B but this program replaces original Medicare when you enroll in it. Medicare contracts with private insurance companies to become responsible for all your medical care. Typically these plans are HMO, PPO or POS plans. Your cost is contained by staying within a network. 

Medicare Part D

Medicare Part D became law in 2006. Original Medicare does not cover prescription drugs. Part D was created for the government to be able to reduce the cost of medications for Medicare Beneficiaries. There is a penalty for not enrolling in Part D. There are 4 stages to Part D. Let us help you understand them. It will save you money.