Picking a Plan
OK. Take a deep breath. Here are the different parts:
Part A: Hospital Insurance
Medicare Part A covers hospital stay costs. Part A also covers hospice care, and may cover home health care and some medical supplies such as wheelchairs.
The good news is that if you are eligible to receive Social Security, you get Part A for free (no monthly premiums). If you’re not eligible for Social Security, you may still be able to get Part A, but you may have to pay a monthly premium.
Part B: Medical Insurance and Equipment
Part B is for medical services that take place outside of a hospital stay. This includes doctor visits, outpatient services (screenings, blood work, mental health, etc.), ambulance services, medical equipment and some home health services. It does not cover routine dental or vision care, elective surgery, or vaccinations.
Part B is optional. Compare the benefits that Part B provides with the benefits available from any other policy you can carry into retirement. Remember that if you want to pick up Part B later, the premiums will be higher.
Part C: Medicare Advantage Plans (MAPs)
Part C tries to lower your costs by offering you all your health services from a single providing organization. They are run by private companies but are still a part of Medicare. Part C encourages preventative care and individual consults for patients. If you take care of yourself and listen to your doctor, the hoped for result is that you will be healthier and there will be lower costs for everyone involved. You might even see reductions in your premiums.
Many Advantage Plans have networks of approved providers. See which doctors and hospitals on the plan are in your area. Online enrollment for Part C begins Nov. 15, 2008.
To see if Part C can save you money, compare it to other plans by doing a personalized plan search or a general plan search.
There are other benefits – some Part C plans offer dental and vision care or prescription drug coverage. You can always add your own prescription drug plan as well (see Part D in our next article).
You must have both Parts A and B to enroll in Part C. Call 800-633-4227 (TTY 877-486-2048) or visit Medicare’s website for more information.
Next issue: Making “Medicare Part D: Prescription Drugs” easier to swallow and Don’t Despair: How to Appeal if you are Denied Coverage.
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