The four parts of Medicare: Part A B C D
Signed into law by then-President Lyndon B. Johnson on July 30, 1965, Medicare coverage began as a social insurance program for American citizens age 65 or older. Today Medicare also covers citizens under 65 years who have been receiving Social Security benefits for at least 24 months or have been diagnosed with End-Stage Renal Disease (ESRD).
There are four parts of Medicare:
Medicare Part A
Part A of Medicare is Hospital Insurance, which will cover hospital stays, nursing home or assisted-living home care for a period of time.
Medicare Part B
Part B of Medicare is medical insurance for most outpatient services and medically necessary products. In addition to outpatient doctor’s services and treatments like chemotherapy, Part B helps you to pay for durable medical equipment (DME) such as wheelchairs or prosthetics.
Medicare Part C
Part C of Medicare deals with Medicare advantage plans. After the Balanced Budget Act of 1997 passed, Medicare recipients were given the choice to either keep their original Medicare plan (Parts A and B) or receive their benefits through a private health insurance provider. After the Medicare Prescription Drug, Improvement and Modernization Act was enacted in 2003, those using private health insurance through Part C became known as Medicare advantage (MA) recipients.
If you choose Medicare advantage, by law, the private insurance company you choose must offer a benefit package that is at least as good as the one provided by Medicare Parts A and B. Most plans include even more coverage, with premiums as low or slightly higher than the premium you have to pay for original Medicare Part B. The only downside is that you are typically bound to use health care providers who have contracted with your plan.
Medicare Part D
Medicare Part D provides coverage for prescription drug plans and went into effect at the beginning of 2006. If you use Medicare Part A or B, you are eligible for Part D and may want to enroll in such a plan to also be covered for your prescription drug needs. If you get a Medicare advantage plan instead of original Medicare, it may already include drug coverage, in which case your overall plan is called MA-PD (Medicare advantage plan with prescription drug coverage).
Costs
Once you’re eligible for Medicare, your health care provider will bill Medicare for the expenses, and you have to make up any differences that aren’t covered.
It is a good idea to look into supplemental coverage, either by enrolling in a Medigap plan combined with a Medicare Part D prescription drug plan, or a Medicare advantage plan with drug coverage to help you cover the costs that are not paid by original Medicare. The additional monthly premiums are generally far lower than the medical bills that may pile up in the event of a catastrophic or long term illness.
