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, 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 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.
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.
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.