Medicare Parts Versus Plans

Medicare Parts Versus Plans

Medicare Parts versus Plans.  These two items have confused many of my clients.  Many people call our office and say they want Part G or Plan D.  In this article I will attempt to break the differences down for you.

Original Medicare

Original Medicare, known as Part A and Part B.  Most Americans are entitled to no-cost Part A.  Part B, however, occurs with a monthly cost.  The amount is determined by your income level.  Part A satisfies roughly 80% of your hospital costs.  Part B provides roughly 80% of your doctor visits.

Medicare Advantage (Part C)

Part C is also known as Medicare Advantage.  This covers the roughly 20% balance after Parts A and B have fulfilled their portion.  It is confusing for people, so I stick with calling it Medicare Advantage.  There are too many letters and plans and parts for people to trip upon.

Part D

Part D covers most of one’s prescription drug costs.  I remember Part D for drugs/prescriptions.  Drug costs are so high these days that this Part comes included in most Medicare Advantage Plans.

Plans

When you hear the word “Plan” before a letter that is a Medicare Supplement Plan.  Medicare supplement plans are quite different than Medicare Advantage plans.  While Original Medicare still covers roughly 80% of your health care costs Medicare Supplement plans to cover the balance.  However, these plans do not include Part D.  You must shop for a Part D plan on the Medicare.Gov website.

Conclusion

In conclusion, it is important to understand the differences between Plans and Parts.  It is easy to misunderstand or misinterpret the letters.  A good place to start is the Medicare.Gov website where you will find a plethora of unbiased information.  Here you can also find specific dates as well as the exact penalties you are facing if you do not sign up for Part D or Part B in your allotted sign-up period.