Medicare 101: Just the Basics

Medicare
Written By Tristan Park

Medicare 101: Understanding the Basics of Medicare

Medicare is a federal health insurance program that provides coverage for people who are 65 and older, certain younger people with disabilities, and people with end-stage renal disease (ESRD) or amyotrophic lateral sclerosis (ALS). If you're approaching age 65 or have a loved one who is, understanding the basics of Medicare is important.

Here's what you need to know:

Parts of Medicare

Medicare is divided into four parts: A, B, C, and D.

  • Medicare Part A provides hospital insurance, covering inpatient hospital care, skilled nursing facility care, hospice care, and home health care.

  • Medicare Part B provides medical insurance, covering doctor services, outpatient care, preventive services, and medical equipment.

  • Medicare Part C, also known as Medicare Advantage, is an all-in-one alternative to Original Medicare (Parts A and B) offered by private insurance companies. It often includes additional benefits such as vision, hearing, dental, and wellness programs.

  • Medicare Part D provides prescription drug coverage, available through private insurance companies approved by Medicare.

Enrollment

Initial enrollment for Medicare typically begins three months before your 65th birthday and lasts for seven months. If you miss your initial enrollment period, you may be subject to penalties and have to wait until the next open enrollment period to enroll.

Costs

Medicare premiums and costs vary depending on which parts you enroll in and your income. Most people do not pay a premium for Part A, but there are deductibles and coinsurance amounts for each part. Private insurance companies offer supplemental plans, known as Medigap, to help cover some of these costs.

Coverage Gaps

There are some coverage gaps in Medicare, including dental, vision, and hearing coverage. Many people choose to supplement their coverage with private insurance plans or by enrolling in a Medicare Advantage plan.

Navigating Medicare can be complicated, but understanding the basics is an important first step. A licensed insurance agent can help you explore your options and find a plan that meets your unique needs. With the right coverage in place, you can enjoy peace of mind knowing you have the health care coverage you need.

Tristan Park