Medicare Parts and Their Costs

Medicare is America’s program for adults who are age 65 and older to help them pay for their healthcare. It is also used for people with certain types of disabilities and those who have end stage renal failure. Everyone in America is automatically eligible for Medicare when they turn 65. You want to make sure to sign up right away because you don’t want to risk paying the late-enrollment fee! When you sign up you will probably notice that there are four different parts. Here is everything you need to know about them.

Medicare Part A

Medicare part A covers everything that has to do with inpatient hospital care, hospice care, skilled nursing facilities and some in-home care too. It also covers any drugs that are administered in an inpatient setting typically. This is a great program because going to the hospital is expensive. If you have paid Medicare taxes for at least 40 quarters of work then you will not have to pay any premium or costs for Medicare Part A. If you haven’t paid Medicare taxes for that amount of time, you will have to pay a premium, but no coinsurance.

Medicare Part B

Medicare Part B covers regular outpatient doctors’ visits, lab tests and medical supplies. The standard premium for this program is $134 dollars, but it can be more if you make more money. If you are also low-income, Medicaid will help you pay the premium. However, Medicare Part B also does have some coinsurance and a deductible of about $183 per year. The coinsurance that you pay is usually around 20%, which isn’t that much.

Medicare Part C

Medicare Part C is comprised of private companies that are contracted by Medicare to create special programs that people can pay for. These programs often include more types of things than the standard Medicare plans cover. They may include dental, hearing and vision coverage that regular Medicare lacks. If you choose to get a Medicare Part C plan, the costs depend on what plan you choose to get.

Medicare Part D

This type of Medicare is only for prescription drugs. It helps you pay for their cost. It does have a small premium that depends on your income. It also has a deductible of $405 dollars, with 25% coinsurance up to $2700 out of pocket expenses. Then you will pay more, which is known, as the “donut hole.” After you have paid $5000 out of pocket total, you will only have to pay 5% coinsurance.

In Conclusion

The type of Medicare costs that you see really depends on your specific situation. If you get a Medicare Part C plan, there’s no telling what your plan could cost, because it will depend on your specific plan. If you have Medicare Parts A & B, the cost will depend on your income level. If you get Medicare Part D, the cost will depend on how much you spend out of pocket on prescriptions each year. Now that it’s all laid out, it doesn’t seem quite as confusing.

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