Making Sense of Medicare

Healthcare issues consistently rank at the top of the nation's news. Most elderly have to decide when they turn 65 years old whether they will sign up for Medicare or not. Medicare rules state that you must sign up for Medicare when you turn 65 or pay a penalty in higher rates.

Even after joining Medicare, most people remain ignorant about their healthcare rights and responsibilities. The rules are difficult to understand and are in a constant state of flux due primarily to legislative rules, continuing regulation, and fee schedule changes.

Medicare Make-up

Medicare consists of two basic parts. They are Part A and Part B. There is a third part known as Part D drug coverage. There is a fourth part known as Part C that actually deals with a type of insurance plan called Medicare Advantage.

Medicare Part A

Part A helps cover your inpatient costs and covers fees charged by facilities like hospitals, clinics, ambulatory surgical centers, outpatient hospital facilities, home health agencies, skilled nursing facilities, etc. Generally, people automatically get Medicare Part A without paying any premiums because they or their spouse paid in Medicare taxes while working. if you don't automatically get premium-free Medicare Part A, you still may be able to purchase it under certain conditions.

Medicare Part B

Part B of Medicare covers fees charged by professionals. It's also known as "medical" because it covers the cost and administration of some drugs. It includes fees charged by doctors, anesthesiologists, labs, radiologists, dentists, audiologists, ophthalmologists, and other professionals, as well as those drugs covered by Medicare, durable medical equipment like wheelchairs, etc. Part B is optional. You normally pay the Part B premium every month. The premium can be higher if you didn't sign up for it when you first became eligible.

Medicare Part D

Part D of Medicare covers the cost of drugs not covered under original Medicare Part B. Private insurance companies approved by Medicare administer Part D drug plans.

Plans Administration