Medicare Parts

Medicare Part A covers hospital stays, skilled nursing care, hospice, and home health-care services. You have to pay various deductibles, coinsurance, and copayments if you only have Original Medicare. You earn Part A premium free when you or a spouse pays FICA taxes while working for at least 10 years (or 40 quarters). Most people do not pay for Part A when becoming Medicare eligible.

Medicare Part B covers medical services such as doctor’s office visits, outpatient surgeries, therapy, lab work, diagnostic services and medical equipment. Part B also includes many preventative services like immunizations, screenings and an annual wellness check. Most people pay a monthly premium for Part B. If you are drawing Social Security, the premium will come directly off your deposit before you receive it. If you are delaying your Social Security draw, you will be billed for Medicare Part B. 

Medicare Advantage Plan

Medicare Part C is another name for a Medicare Advantage Plan. Only those who choose to enroll in a Medicare Advantage Plan have Part C. A private company will handle your medical benefits and everything will bill through your Medicare Advantage Plan instead of original Medicare. You do still need to have Medicare A&B in place and pay your monthly Part B premium to be allowed to enroll in a Medicare Advantage Plan. 

Original Medicare doesn’t cover prescription drugs. Although Medicare Part D coverage is optional you will incur a late-enrollment penalty if you don't sign up when you are Medicare eligible or have other credible coverage in place. This is true even if you are not taking any prescriptions. You can get Medicare Part D prescription drug coverage either through a stand-alone Prescription Drug Plan (PDP) if you choose a Medicare Supplement Plan or through a Medicare Advantage Plan that includes prescription drug coverage.