What Is Medicare?
Part A of Original Medicare is hospital insurance and covers costs associated with confinement in a hospital or skilled nursing facility.
For most people, there is no monthly premium for Part A but there is a deductible and per-day copays for hospital and skilled nursing stays.
Part B of Original Medicare is medical insurance that covers physician services, outpatient care, tests, and some supplies. The standard monthly premium for 2023 is $164.90*.The Part B annual deductible is $226.
After your deductible has been met, you generally pay 20% of the Medicare approved amount for most doctor services, outpatient therapies, and durable medical equipment. You will also pay for most doctor services while you are admitted into a hospital as “inpatient.”
*You could pay more or less depending on your modified adjusted gross income
Medicare Advantage Plans are offered by private insurance companies approved by Medicare. If you join a Medicare Advantage Plan you are still part of the Medicare program, however, your Parts A and B benefits are provided by the private Medicare Advantage Plan rather than Original Medicare.
These plans are required to cover all services approved by Medicare. Most Medicare Advantage Plans offer services in addition to Original Medicare and may also include Part D prescription drug coverage. Most Advantage Plans will be HMOs or PPOs.
Medicare Part D plans are prescription drug plans offered by private insurance companies approved by Medicare. Each plan has its own list of covered drugs called a formulary. Within the formulary there are different drug tiers. The cost of your drug will depend on the tier it falls under. Typically the lower the tier the lower the cost.