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A Medicare and Medicare Supplement Insurance Guide for Beginners

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Turning the age of 65 or merging onto Medicare can be a very stressful time for the average American. Many of these Americans have a very difficult time sorting through all the different options with Medicare and Medicare insurance. Use these descriptions to avoid all of the confusion and understand the four "parts" of Medicare and what they include.

Part A

Part A is the part of Medicare that everyone receives when they pay into Social Security during their working life, as long as they have met the minimum work requirements. This part is often termed the "hospital" part of Medicare as it primarily covers in-patient hospital care. In addition to hospital care, it covers skilled nursing facility care, hospice facility care, and in-home health care.

Part B

Part B of Medicare is optional. Those who have employer coverage with Medicare coverage do not really need Part B until/unless their employer coverage ends. There is also a monthly cost with Part B that is usually deducted out of the beneficiary's social security check.

Medicare Part B covers certain services that are related to general care by a doctor. This part is often termed the "doctor's office" part of Medicare because it covers diagnostic testing, doctor's services, out-patient care, physical therapy, and some preventive screenings.

Part C

Part C is the newest part of Medicare as it was created just over 10 years ago. It is known as the Medicare Advantage plan, but it has also been termed the "privatized" Medicare. Part C allows for a private insurer, with a government contract, to take over and manage all of your Medicare benefits. All of your benefits are provided to you through an insurance company, and they act as a representative for you by paying your claims for you when you pay premiums directly to that company.

The Part C plan is also optional. If you choose this plan, you still must pay the Part B premium and you will not "lose" Part A and Part B, but the Part C plan will provide your Medicare benefits in lieu of parts A and B.

Part D

Part D is often the most discussed part of the four plans. This part of Medicare covers prescription drugs. Private companies offer Part D and these companies must be certified and accepted by the Centers for Medicare & Medicaid Services annually in order to offer this prescription coverage.

As a receiver of Medicare, you pay certain premiums that go directly to private insurers, and many of these companies allow these premiums to be deducted straight from your Social Security check. Again, this plan is an optional part of Medicare. You do not have to sign up for it when you are qualified for Medicare.

As you can see, making the right choice for your Medicare plan can be much easier once you understand what each part covers. When you know the basics about Medicare and Medicare Insurance, you will have no trouble explaining the options to friends or family members who are new to their Medicare coverage.

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