There are four parts to Medicare. Part A relates to Hospital Insurance; Part B is for Medicare Insurance; Part C is Medicare Advantage; and Part D encompasses the Prescription Drug Plans.

Medicare Part A: Hospital Insurance

2023 Part A Deductible will be $1600

Per Admittance 

Medicare Part A covers in-patient hospital costs.  It helps with skilled nursing facilities, hospice and home health care.  Medicare Part A is free for most people as most people have worked enough quarters in our country and paid into the system to cover this part of their Medicare.  If you don’t qualify for free coverage; most people still apply but they pay over $400 per month for their Part A coverage.  I always tell my clients if you are staying over as an admitted patient – this will be billed to Original Medicare Part A. The Medicare and You book is a great resource to get all the information you will need to fully understand Medicare Part A and Part B. 

Medicare Part B: Medical Insurance

Standard cost for Part B $164.90 per month. If you are a higher earner you may pay more for your Part B costs. If your income is below a certain threshold you may qualify for the Medicare Savings Program; A program to help lower income people. The cost varies depending on your adjusted gross income year by year.  with their Part B premium, deductibles and co-insurance.

Medicare Part B covers outpatient medical expenses such as doctor visits, specialist visit, day surgery (home by end of day) lab work, Chiropractic visits, etc. 

The deduction for Part B in 2023 is $233 per year. Once you have come through your deductible you will be responsible for the 20% of leftover Medicare Approved Charges.

Medicare Part C: Medicare Advantage Plans

Medicare Part C is also known as  Medicare Advantage as Medicare Advantage or MAPD (Medicare Advantage Prescription Drug) plans and it is insurance that is offered by a private health insurance company.  It is important to understand that when you enroll into Medicare Advantage your insurance is being provided by a private health insurance company and not Original Medicare.

In order to enroll in a MA or a MAPD plan – you must have Original Medicare Part A and B (your still paying for it as well) but your Medicare benefits are being managed by a private health insurance company.  These MAPD plans come in many different shapes and sizes – from HMO, PPO, PFFS, DSNP  and others…they also range from $0 per monthly premium on up to $100+ monthly premium.  You must live in the plans service area and you will want to make sure your doctors accept the plan.  Enrolling into Part C is voluntary and some people prefer a Medicare Supplement or Medigap (insurance that pays 2nd to Original Medicare).  

Be sure and understand your choices when choosing a Medicare plan.  Working with a Broker assures that your best interest are being met as Brokers, like myself, represent many different companies.

Medicare Part D: Prescription Drug Plans

There are two ways to get a prescription drug plan: either through your Medicare Advantage Prescription Drug (MAPD) plan or by purchasing a stand alone drug plan. The Stand Alone Prescription Drug Plans only cover prescription drugs and will help keep the costs down on some of those spendy medication costs.  Each state has different plans with different costs associated with the plans.  

It is important to find the plan that is most cost effective for you according to your medication list.  You can typically pick your medications up from your local pharmacy or you can have them mail ordered.  Most states have around 25 plans to choose from.  It is recommended to work with a broker to determine which plan is best for you.