MEDICARE BASICS

The Medicare Alphabet

What is Medicare?

Original Medicare or Medicare as it is typically called is government-sponsored health insurance for people 65 or older and people under 65 who have been approved for Social Security Disability (SSD) benefits, Railroad Benefits, and people with End Stage Renal Disease or ALS.  Original Medicare only includes Parts A and B and does not include a prescription drug benefit.  Individuals needing prescription drug coverage much purchase it separately under Part D.

Medicare Part A

Medicare Part A provides hospital insurance coverage for inpatient care and treatment in skilled nursing facilities and hospice.  Most people do not pay a premium for Part A. There are lifetime limits on part A coverage.

Medicare Part B

Medicare Part C

Medicare Part C plans or Medicare Advantage plans are insurance plans offered by private insurance companies and typically combine Medicare Parts A, B, and D.  Part C plans are highly regulated and must provide benefits “As Good or Better Than” Original Medicare.   

Medicare Part D

Medicare part D provides coverage for prescription drugs.  In 2022, the average Part D premium was $33.  Part D is not part of Original Medicare.  You must choose to buy a Part D plan, and if you don’t, you may be penalized if you try to buy a Part D plan in the future. 

Medigap or Supplement Insurance

Medigap or Medicare supplement insurance  fills the gaps not covered by Original Medicare.  These plans work with Part A and B to fill gaps in Medicare coverage.  These plans are usually too expensive for disabled persons under age 65 and people with lower incomes.  People with Medigap insurance must also buy a plan under Part D to obtain prescription drug coverage.