Open enrollment for Medicare begins October 15th, so if you’re over 65 and want to make changes to your plan, now is the time to do so.
Here’s a refresher on the different parts of Medicare, something that should interest you.
It used to be relatively simple to enroll in Medicare because your choices were limited. Now with the advent of Medicare Advantage, which has experienced significant membership growth until recently, there are a multitude of choices. In order to understand how Medicare works, consider it’s four basic components, or parts, which are labeled one of four letters: A, B, C or D.
Part A covers hospital inpatient care, skilled nursing care, hospice care, and some home health services, said Deepak Goyal, MD, an executive medical director at Monument Health in South Dakota. In brief, this can be called “hospital insurance,” he said.
Part B covers outpatient medical care, such as doctor’s visits, preventive services and the use of durable medical equipment. Part B can be called doctor insurance, Goyal said.
Meanwhile, Part D covers prescription drugs.
Together, those three parts are known as traditional Medicare. If you choose or haves chosen traditional Medicare, you may want to supplement the coverage with what is called Medigap coverage, or Medicare Supplement insurance., which can help pay for your out-of-pocket costs such as co-pays, co-insurance and deductibles.
Part C is Medicare Advantage, which generally covers Parts A, B and D together, and sometimes more. Medicare Advantage is offered with the assistance of private insurance companies who contract with Medicare.
Medicare Advantage might look attractive to you if you’re looking for an all-inclusive plan like what you’re used to receiving from an employer. And some Medicare Advantage plans have things like dental, vision and hearing included.
But there are some network restrictions included in Medicare Advantage plans, so you might not be able to see your preferred doctor. There also could be prior authorization issues, which means that you could be facing delays until your health plan approves your care.