How to Understand Medicare

Medicare is the federal health insurance program for people age 65 and older and also some disabled people under age 65. This insurance covers many, but not all medical costs. So, we, in turn, have out-of -pocket expenses that can be costly, if you have a major illness or hospitalization.

There are two parts to Medicare. Part A is hospital insurance that is available to most people at no costs. Part A covers:
Care in hospitals, skilled nursing facilities and hospices.
Home health services
Blood transfusions

Part B is optional Medicare insurance. Most people pay for Part B by a monthly premium.
Part B helps pay for: Medically necessary doctor or outpatient hospital services.
Services to prevent or detect illnesses at an early stage (flu shots, mammograms, cancer and diabetes screening
Ambulance services
Durable medical equipment such as oxygen tents and wheelchairs
Some other medical services that Part A does not cover.

There are two opportunities included in the Part B insurance. Medicare advantage and Medical supplement. Medicare advantage includes prescriptions, but one must go to the doctors in their network. Medicare advantage would be good if you are healthy and have no particular allegiance to a specific doctor.

Medical suplemental insurance has several choices underneath this type. Look at the benefits of each and how much each category costs.

Part C is an optional program.

Private insurance companies (that are approved by Medicare) provide all medical needs in Part C. Usually Part C is a lower cost alternative to the original Medicare health plan. You must use the doctors and the hospitals covered in your Part C insurance.

Part C includes a PPO (Medicare Preferred Provider Organization) or a HMO (Medicare Health Maintenance Organizations) and a Medicare Special Needs (designed for people with chronic diseased or special medical needs) and a medical Savings Account.

If you join Part C, you will have complete Part A and B coverage.