Medicare is a government-backed insurance program for people age 65 and older. However, certain people under the age of 65 can qualify for Medicare coverage. The Medicare program is divided into several parts, each covering expenses for different aspects of healthcare. If you are approaching a point in your life where you need to start considering Medicare coverage, here is some information that may be beneficial to you.

What Are The Parts Of Medicare?

Medicare is divided into several parts that cover services in different ways. These are Part A, Part B, Part C, and Part D. Here is what each part has to offer:

Medicare Part A

Part A covers inpatient hospital care, skilled nursing facility care, hospice care, and home health care. If you have paid a sufficient amount of Medicare taxes, you can likely use Part A coverage without paying an additional monthly premium. If you haven’t paid enough into the system, you may also be eligible to purchase Part A coverage.

Medicare Part B

Part B coverage will cover medical services provided by doctors and other healthcare providers. It will also take care of outpatient care, home health care, medical equipment, and various preventive services, like screenings, shots, vaccines, and wellness checkups. Medicare typically covers a significant portion of healthcare service and supply costs, but not all of it. Therefore you may need Medicare Supplemental Insurance (Medigap).

Medicare Supplemental Insurance

Medicare Supplement Plans are sold by private companies and can help cover remaining healthcare costs, like copayments, coinsurance, and deductibles. These plans are sold by private companies and are offered in ten different standardized plan formats. The amount of out-of-pocket costs covered by Medigap policies range from a minor portion to the full amount, depending on the plan you choose.

A financial advisor can help you determine whether this option is right for you.

Medicare Part C (Advantage)

While Part A and B together are often referred to as Original Medicare, Part C is a unique option that offers Part A, B, and C coverage. Someone enrolled in a Medicare Advantage plan can also choose a package that offers Part D coverage, the prescription drug coverage program for Medicare. Private insurance providers only sell Medicare Advantage plans, therefore they often come with higher premiums than Original Medicare.

Consulting a financial advisor from Grutz Financial can help you figure out if an Advantage plan is worthwhile for you.

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