Medicare

A premium is the monthly amount you pay for your health care coverage

A deductible is the amount you pay for health care before your insurance plan will begin to make payments.

A copayment is the set amount that you pay as your share of the cost for medical services or prescription drugs.

Coinsurance is the percentage of cost for medical services or prescriptions drugs that you must pay. For example, Original Medicare will pay 80% of the cost for medical services and you, as the subscriber, must pay 20% of the cost for the services.

The four Medicare parts are:

• Part A  – is your hospital care which covers inpatient hospital care, skilled nursing facility care, hospice care, and home health care.
• Part B – is your medical care which includes services from doctors, outpatient and home health care, durable medical equipment, and some preventive services. You pay a premium for Medicare Part B.
  • Parts A and B makeup the Original Medicare Plan.
• Part C – is your Medicare Advantage plan run by Medicare-approved private insurance companies like Aetna.
  • Part C includes services covered under Medicare Parts A and B and can include Medicare Part D services and may add extra benefits and services.
• Part D – your prescription drugs plan run by Medicare-approved, private insurance companies. It can be stand alone or packaged in a Medicare Advantage plan
  • Helps cover the cost of prescription drugs

Medicare Advantage is an all-in-one health care coverage that offers Part A and Part B benefits and may include additional benefits like dental, vision, and hearing care; fitness memberships; and Part D prescription drug coverage. Private Medicare-approved companies, that contract with the government, administer Medicare Advantage plans.