Medicare explained

Part A

Part A covers hospitalization. This typically does not have a premium. If you were to be hospitalized, you would have a deductible for the first 60 days of inpatient hospitalization. The deductible amount varies from year to year.

Part B

Part B covers medical or outpatient services. You will have a premium for this and generally there is an annual deductible and 20% co-insurance. There is not a maximum cap that you could be responsible to pay out of pocket.    


Part C

Part C, also called Medicare Advantage plans, come in the forms of HMO, PPO or PFFS. They typically combine your parts A, B and D into one plan.  These are through private insurance companies that generally offer extra benefits. The monthly premiums start at $0/month. Each insurance company offers different co-pays and deductibles.  

Part D

Part D is your Drug coverage. These are also through private insurance companies. Part D prescription plans can be combined in an Advantage plan or be stand alone. This coverage should be purchased at time of eligibility to avoid penalties down the road.