Millions of people get the Medicare insurance program confused about every year because of things they have heard, read and misunderstandings. While the Medicare program is a wonderful program, it does need to be explained in detail for people to understand their benefits.
The Medicare Insurance program is an insurance program that is administered by the Social Security Administration. It is a benefit that is issued by the federal government and has to follow federal guidelines.
The Nuts and Bolts of It All
Understanding Medicare insurance is something that can be time consuming. Most people know there are different parts to it but they don’t understand what part does what and why they need so many parts to get coverage. While the parts work differently, they all work together and give people the coverage they need.
Medicare Insurance Part A- Medicare insurance part A is one of the first parts of Medicare that is issued. Most people automatically qualify for Medicare part A when they turn 65. Medicare part A is hospital insurance. This insurance is used to cover:
There are many other things that Medicare insurance part A covers but those are the most common.
Medicare Insurance Part B- Medicare insurance part B is normally the second part of Medicare that is issued to people. For some, Medicare part B is issued at the same time as part A. Medicare insurance part B is medical insurance. Medicare part B is used for:
Medicare Insurance Part C- Medicare insurance part C is what normally confuses most people. People that choose to have Medicare insurance part C give up their coverage under Medicare parts A and B. They choose will no longer have coverage under provided by the federal government.
The benefits that are covered in Medicare parts A & B will still be covered in some form by Medicare part C. People will still be able to get care with this coverage but it will be guided by a Medicare approved insurance company. Not all Medicare part C plans are alike. There are differences because they are created by different insurance companies and don’t all have to give the exact same benefits as one another. They only have to follow guidelines that are given by Centers for Medicare and Medicaid Services (CMS).
Medicare Insurance Part D- Medicare insurance part D is for prescription medications. This is a part of Medicare that isn’t required, it’s strongly recommended. Those that have Medicare part D will have insurance coverage for their prescription medications. Those that choose not to enroll in a Medicare part D plan will face penalties.
The most important thing that people should understand about Medicare part D is that it is NOT issued by the federal government. Like Medicare part C, it’s governed by Medicare approved insurance companies.
Medicare Insurance Part E, F, G and Beyond- Any Medicare insurance plans that fall into this category is considered a Medigap or supplemental insurance policy. Many of these policies are different and have different benefits. These plans and policies are not required and are not governed by CMS. These plans are created under the guidance of Medicare approved insurance companies.
Understanding Medicare insurance is hard. It’s something that has many parts that work together. While it’s hard to understand, it NEEDS to be understood. Those that need help understanding Medicare insurance should call Medicare at 800-633-4227.