Health insurance is vital to safeguard oneself against unexpected medical expenses. With advancing age, its importance is felt more acutely because of age-induced ailments. In the USA, people aged 65 or older are covered by a Medicare health insurance policy.

Medicare can be secured earlier if the beneficiary is disabled, has ALS (Lou Gehrig’s disease), or has ESRD (Ed-Stage Renal Disease).

Different Parts of Medicare

The Medicare health plans are categorized in different parts to clearly segment covered services. These parts are discussed below.

Part A

This part is called ‘Hospital Insurance’. It covers the medical costs associated with

• Hospital-based inpatient care
• Hospice care
• Skilled nursing care
• Home care.

Part B

The plans in this part, called ‘Medical Insurance’, are offered by Medicare in association with private insurance companies under its contractual obligation. The Medicare Part B hospital coverage includes costs related to

• Visiting doctors and services from healthcare providers.
• Outpatient care.
• Availing the services of durable medical equipment like hospital beds, walkers, wheelchairs, and other ancillary equipment.
• Annual ‘Wellness’ visits.
• Vaccines, flu shots, lab tests, screenings, X-rays, and other preventive services.

You should compare the best Medicare Part B plans to get comprehensive coverage, including home healthcare. Presently, the annual deductible for Part B is $226. The premium starts from $164.90 monthly. A coinsurance is to be paid by you for each service received.

Part C

This part called ‘Medicare Advantage’ consists of plans offered by private insurers with the approval of Medicare. The plans often bundle together Parts A and B and sometimes Part D to offer comprehensive coverage for health and prescription drugs. Part C may cover health services related to teeth, hearing, or vision not covered in the original Medicare.

Also, out-of-pocket expenses may be lower compared to the original plan.

Part D

Part D, or ‘Medicare Drug Plan', can be availed of by joining Part C with a drug coverage plan or separately from the Original Medicare (Parts A and B). Your expenses on prescription drugs, vaccines, and recommended shots are covered. The plans for this Part are run by private insurers that adhere to Medicare rules.

Part G

Medicare bears 80% of the expenses incurred on coverage under Part A and Part B. You need to pay the remaining 20% from your pocket. However, if you opt for Medigap (Medicare Supplemental Insurance), the insurer pays all other expenses left after the Medicare coverage.

Private health insurers offer at least ten supplemental plans for you to choose from, depending on your requirements and projected expenditures. Among these, Plan G, or Part G, is the most preferred because of its comprehensive coverage. It will cost you a monthly premium.

Once you have paid the Part B deductible, remaining coinsurance, copays, and out-of-pocket expenditures will be covered by Plan G.

Coverage of Part G

Medicare Part G coverage can be sought if you feel that your health may deteriorate in the future because of congenital or other reasons. This Part covers all expenses that Original Medicare doesn’t cover. These are related to

• Coinsurance for Part A and an additional 365 days of hospital stay cost after the exhaustion of the benefits of Medicare.
• Coinsurance and copays for Part B and hospice care for Part A.
• Cost of 3 blood pints, when required.
• Deductibles for Part A.
• Coinsurance for skilled nursing facility care.

Conclusion

The different parts of Medicare are designed to offer you optimum monetary coverage for various health-related services. The supplemental coverage comes in handy when your original Medicare coverage starts running out.

For example, Plan K offers coverage for half of Part B coinsurance or the 20% medical cost you have to bear out of your pocket. An adequate understanding of the Medicare parts will help you make an informed decision regarding the best health insurer.