The Basic Parts of Medicare

Posted by Richard on November 2, 2023

What are the basic parts of Medicare and how does it works?

It can be confusing!
Here are the basic parts of Medicare and what they do:

Medicare Part A, hospital insurance.
Often called Original Medicare, Part A covers care in hospitals and skilled nursing facilities, including hospice and home health care. The Part A premium is free if you paid Medicare taxes for at least 40 quarters. There is a deductible of $1,600 for 2023. If you stay in a hospital for more than 60 days, you will pay co-insurance.

Medicare Part B, medical insurance.
Part B covers doctor’s visits, outpatient care and some home health care. It isn’t free. For 2023 you have a deductible of $226 and you will pay a premium of at least $164.90 per month. After you have spent the deductible, you pay 20 percent of expenses, unless you have a Medicare Advantage plan or purchase supplemental coverage. You must enroll at age 65 or you will be penalized.

Medicare Part C (Medicare Advantage)
Part C does the job of Parts A and B and is sold by private insurers. Most plans include prescription drug coverage. For 2023, the average monthly premium is $18.

Medicare Part D, prescription drug coverage.
You won’t need this if you have Medicare Advantage (Part C) with drug coverage. Part D is standalone private prescription drug insurance. You will need it if you choose Part A and Part B (original Medicare) and you want your prescriptions covered.