The Four Main Parts to Medicare:

Part A

Part A is your hospitalization coverage and the first part of Medicare you will receive. Part A has no premium because you funded it while working. As long as you have worked for 40 quarters (10 years) you will receive Part A on the 1st of the month you turn 65. For 2020 Part A has a $1,408 deductible when admitted to the hospital after that Medicare covers the majority of costs.

Part B

Part B is your medical (out-patient). Once you have chosen to elect Part B, there will be a monthly premium (average premium $144). Part B will cover 80% of your costs and you are responsible for the remaining 20% and a annual deductible of $198 (2020). Popular services covered under Part B are doctors visits, specialist, outpatient surgery, rehab, observation, lab work, MRI, and cat scans.

Part C

This is known as a Medicare Advantage Plan or MAPD. They are either an HMO, PPO, PFFS, or MA only. They are government ran and replace your Part A and B of Medicare. You are still responsible for roughly 20% of all medical costs plus co-pays. Most Advantage Plans are network based. You can purchase a Medicare Advantage plan with or without prescription coverage. Typically Medicare Advantage Plans can be purchased during the Annual Enrollment Period.

Part D

These are stand alone prescription plans.They are government run. Changes can only be made to these plans during the Annual Enrollment Period. They allow you to get your prescriptions at a discounted rate. If you do not enroll in a plan or have a credible drug coverage through some other means the government will penalize you when you do enroll.