Four parts of Medicare 

Medicare Part A: 

This is care after you are formally admitted to the hospital. Covers you up to 90 days each benefit period plus 60 lifetime reserve days.  Part A also covers care up to 100 days in a skilled nursing facility like a nursing home. Skilled care at home is also provided plus hospice care if you are terminally ill.  Many working Americans will not see a monthly premium for Part A. 

Medicare Part B: 

This part of Medicare provides medically necessary services like care in a doctor’s office, preventive services like screenings to detect medical conditions. These preventive services may be covered with no coinsurance.  Other services like X-rays and lab tests are also covered plus selected drugs like anti-cancer drugs that are typically administered by a physician. There is a monthly premium for Part B based on your income from two years ago.  You may also face a lifetime penalty if you are late to enroll in Medicare Part B. 

Medicare Part C: 

This part permits private health insurance companies to also provide Medicare services in plans called Medicare Advantage plans.  These companies must offer the same benefits as Original Medicare Parts A and B but can do so with different rules, costs and coverage limitations.  You typically also get Part D prescription drug plan coverage plus other benefits that may not be found in Original Medicare Part A and B like dental, vision and gym membership options.  These plans may or may not have a monthly premium in addition to your Medicare Part B premium and enrollment in Medicare Part A. 

Medicare Part D: 

This part of Medicare provides outpatient drug coverage while you are home. This coverage is also provided by private insurance companies like Medicare Advantage plans.  The Medicare drug plans have different costs and different lists of drugs that each will cover.   This list of covered drugs is called a formulary.  Make sure that you choose a drug plan that covers your drugs.  You may also face a lifetime late enrollment penalty if you don’t sign up for a Part D plan or have a similar drug plan coverage elsewhere like as a retiree or covered under a Medicare Advantage plan. 

Medicare Supplement Insurance: 

Medicare Parts A and B has considerable out of pocket expenses.  You can purchase an insurance plan called Medicare Supplement plan (also known as a Medigap plan) that will pay the out-of-pocket expenses that are found in the Original Medicare Part A and B.  Three states (Minnesota, Massachusetts and Wisconsin) have their own plans. Otherwise the other 47 states’ Medigap plans have identical plan features.  Premiums and customer service can differ on the plan you select and the company you buy it from.  You have to be first enrolled in Original Medicare Plans A and B and you cannot be enrolled in a Medigap plan and a Medicare Advantage plan at the same time.