Medicare Plans and Parts Explained

Are you enrolled in Medicare this year? Unsure which plan to sign up for? Read on to understand the difference between each Medicare plan.

Medicare is the federal health insurance program for people who are 65 or older, certain younger people with disabilities, and people with End-Stage Renal Disease (permanent kidney failure requiring dialysis or a transplant, sometimes called ESRD). Medicare has 4 parts: A, B, C, and D. Part A covers inpatient hospital care, skilled nursing facility care, hospice care, and home health care. Part B covers outpatient services including preventive services.

Part C is an all-inclusive plan that offers original Medicare coverage plus extras like prescription drug coverage and vision benefits. Part D is a stand-alone prescription drug plan. You can get Medicare coverage through a Medicare Advantage Plan (Part C) or a Prescription Drug Plan (Part D). You can also buy additional Medicare insurance plans to cover things that Medicare doesn't, like dental care, hearing aids, and more.

How to Qualify for Medicare

If you're already getting benefits from Social Security, you'll automatically be enrolled in Medicare Part A and Part B starting the first day of the month you turn 65. If you're not receiving these benefits yet, you need to apply for Medicare three months before your 65th birthday. You can sign up for Medicare online at medicare.gov. If you wait to sign up for Medicare during the seven-month period that starts three months before you turn 65 and ends three months after you turn 65, you may have to pay a late enrollment penalty.

How to Get Medicare Coverage

There are two ways to get Medicare coverage: Original Medicare and Medicare Advantage. With Original Medicare, you're covered by two parts of Medicare: Part A (Hospital Insurance) and Part B (Medical Insurance). You can also buy a Medicare Supplement Insurance plan (Medigap) to help cover some of the out-of-pocket costs that Medicare doesn't cover. With Medicare Advantage, you're covered by Part C. All Medicare Advantage plans must offer at least the same level of coverage as Original Medicare, but many plans offer extra benefits like prescription drug coverage, dental care, vision care, and more.

When to Get Medicare

You can enroll in Medicare Advantage during the Medicare annual enrollment period from October 15 to December 2022. You can also switch from Original Medicare to a Medicare Advantage plan during this time. If you have a Medicare Supplement Insurance plan, you can make changes to your coverage during the Medicare open enrollment period from October 15 to December 2022. This is also the time when you can join, switch, or drop a Medicare Prescription Drug Plan.

Understanding the Different Plans

There are four parts to Medicare: Part A, Part B, Part C, and Part D. Here's a breakdown of each part:

• Part A covers inpatient hospital care, skilled nursing facility care, hospice care, and home health care.

• Part B covers outpatient services including preventive services.

• Part C is an all-inclusive plan that offers original Medicare coverage plus extras like prescription drug coverage and vision benefits.

• Part D is a stand-alone prescription drug plan. You can get Medicare coverage through a Medicare Advantage Plan (Part C) or a Prescription Drug Plan (Part D). You can also buy additional Medicare insurance plans to cover things that Medicare doesn't, like dental care, hearing aids, and more.

Medicare Part A is hospital insurance that helps pay for inpatient care in a hospital or skilled nursing facility. Part A also covers hospice care and home health care. Most people don't have to pay a premium for Part A because they or a spouse paid Medicare taxes while working. If you don't qualify for premium-free Part A, you can buy it by paying a monthly premium.

Medicare Part B is medical insurance that helps pay for outpatient care, preventive services, and some medical supplies. You usually have to pay a monthly premium for Part B.

Medicare Part C is an all-inclusive plan that offers Original Medicare coverage plus extras like prescription drug coverage and vision benefits. Part C is also known as a Medicare Advantage Plan. You usually have to pay a monthly premium for Part C.

Enrolling in Medicare

You can enroll in Medicare during the Medicare annual enrollment period from October 15 to December 2022. You can also switch from Original Medicare to a Medicare Advantage Plan or Prescription Drug Plan during this time. If you have a Medicare Supplement Insurance plan, you can make changes to your coverage during the Medicare open enrollment period from October 15 to December 2022. This is also the time when you can join, switch, or drop a Medicare Prescription Drug Plan.