What Are The 4 Parts of Medicare?

In This Article...

Entering Medicare can feel like navigating a labyrinth with its different parts and coverage options. To clarify the healthcare program, let’s break down Medicare into its four distinct parts and explore what each one offers.

Medicare Part A, often referred to as hospital insurance, covers inpatient hospital stays, nursing facility care, hospice care, and some home health care services. Most people do not pay a premium for Part A if they or their spouse paid Medicare taxes while working for 10 years or 40 tax quarters. However, there may be deductibles and coinsurance associated with certain services.

Nurse sitting down with patient

Medicare Part B is medical insurance that covers outpatient care, doctor visits, preventive services, and some home health care. Beneficiaries pay a monthly premium for Part B coverage, and there are also deductibles and coinsurance. Part B provides coverage for a wide range of services outside of the hospital setting.

Medicare Advantage, or Part C, is an alternative to Original Medicare (Part A and Part B). Offered by private insurance companies, which is approved by Medicare. Part C plans provide all the coverage of Parts A and B and often include additional benefits, such as vision, dental, and prescription drug coverage. These plans may have different costs and rules, and beneficiaries continue to pay their Part B premium along with any additional premium for the Advantage plan.

prescription drugs offered on medicare

Medicare Part D is the prescription drug coverage component, available through private insurance plans. These plans help cover the cost of prescription medications, and beneficiaries typically pay a monthly premium, an annual deductible, and co-payments or coinsurance. Part D is essential for those who need prescription drugs and want to avoid high out-of-pocket expenses.

While each part of Medicare serves a specific purpose, many beneficiaries opt for a combination of parts to create comprehensive coverage that suits their healthcare needs. For example, some individuals choose Original Medicare (Parts A and B) and add a Part D prescription drug plan, while others prefer the convenience of a Medicare Advantage plan that combines hospital, medical, and often prescription drug coverage.

Therefore navigating Medicare can become confusing unless you really understand what each part offers and if its worth it for you and your situation. If you want help determining which path you should take for Medicare, reach out to us to meet with us!

The commentary on this article reflects the personal opinions, viewpoints and analyses of the author, Josh Kerchis, and should not be regarded as a description of advisory services provided by Foundations Investment Advisors, LLC (“Foundations”), or performance returns of any Foundations client. The views reflected in the commentary are subject to change at any time without notice. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security, or any security. Foundations manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Foundations deems reliable any statistical data or information obtained from or prepared by third party sources that is included in any commentary, but in no way guarantees its accuracy or completeness.

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