Founders Life and Health Blog
Many of you who are approaching 65 will no doubt be bombarded with literature from Medicare in your mailbox. But what exactly is Medicare? What are your options? What are the four important parts?
Medicare Explained (2021)
As an independent broker based in Missouri, I love nothing more than to help anyone who needs to have Medicare explained.
In my helpful article we will discuss everything you need to know. The simple version!
Let’s get straight into the mini takeaway before we dive into details so you are better equipped to make the most informed decisions about your Medicare plan.
To explain Medicare simply, there are four parts:
A – Hospital coverage
B – Medical Insurance
C – Advantage Plan
D – prescription drug coverage.
You will be automatically enrolled in Part A on turning 65 and is free, Part B depends on other factors and has a monthly premium.
If you are getting ready to turn 65, you will most likely be receiving a lot of information about Medicare via calls and mailers piling up in your mailbox!
Let’s look at the 4 parts in detail:
Part A – Hospital Coverage
Within part A there are three crucial things to be aware of. Part A is:
Part B – Medical insurance
Although we’ve found out that part A is automatic, part B won’t necessarily be automatic.
If you will soon be 65, and wish to continue to work, then there is a lot of information you’ll need to know and understand.
For example, are you going to take social security?
The other important thing to know is that there is a monthly premium for Part B.
For more information on this, check out my video link.
Part C – Medicare Advantage Plan
If you decide to take Part C, this will effectively replace both Parts A and Parts B of Original Medicare.
Part D – Prescription Drug Coverage
The easiest way to understand this is to remember ‘D’ relates to Drugs!
With the four parts outlined, let’s head into more about the two ways to enroll in Medicare.
Two ways to enroll in Medicare
There are two main ways to enroll in Medicare.
Option 1 – Original Medicare and Medicare Supplement
You can choose Original Medicare, Part A and Part B. If you do, then you will want to look at a Medicare Supplement.
This is because as we found out at the top of the article, that Parts A and B only cover 80% of your costs.
Medicare Supplement (Gap Plan)
For the gaps in your coverage, the Medicare supplement will take care of the 20% which isn’t covered on Original Medicare (Parts A and B).
It’s important to remember that if you go for this option then you must also make sure you get prescription coverage, this will be by taking Part D.
Option 2- Medicare Advantage Plan
This option is an alternative to Original Medicare and covers:
In a nutshell, one of my most important pieces of advice is to make sure you thoroughly understand the difference between a Medicare Supplement and an Advantage Plan.
The Medicare plan you choose will depend on many factors, including the type of plan that is right for you.
You might also find my article 4 Medicare Mistakes to Avoid, or check out my video Medicare Explained.