What is Medicare?
If you would rather watch a video, click the one above to see how Medicare works.Medicare is the federal health insurance program administered by the Centers for Medicare and Medicaid Services (CMS) for:
- People who are 65 or older and have paid Medicare taxes, which should have been deducted from your paycheck, for at least 10 years during their lifetime
- Certain younger people with disabilities
- People with End-Stage Renal Disease (ESRD)
Parts of Medicare and what Medicare covers:
- MEDICARE PART A (Hospital Insurance)
Part A covers inpatient hospital stays, skilled nursing facility care, hospice care, as well as some home health care. Part A is administered and managed by the government.
- MEDICARE PART B (Medical Insurance)
Part B – certain doctors’ services, outpatient care, medical supplies, and preventive services. Part B is administered and managed by the government.
- MEDICARE PART C (Advantage Plans)
Part C -Medicare Advantage is an “all in one” alternative to Original Medicare. These bundled plans include Part A, Part B, and usually Part D. Advantage plans are run by private insurance companies, although they are regulated by the government.
- MEDICARE PART D (Drug Coverage)
Part D -Helps cover the cost of prescription drugs.
Medicare drug coverage plans are run by private insurance companies, although they are regulated by Medicare.
The 2 Main Ways To Get Medicare are:
Medicare Advantage plan costs vary from plan to plan and from one geographic area to another. Speak with your sales representative about costs for Advantage plans in your area.
Original Medicare costs are standardized by the government and can be seen just below.Click to see: A Quick Look at 2021 and 2022 Original Medicare Costs
Part A Premium – Most people don’t pay a monthly premium for Part A (sometimes called “premium-free Part A”). If you buy Part A, you’ll pay up to $471 each month ($499 in 2022). If you paid Medicare taxes for less than 30 quarters, the standard Part A premium is $471 ($499 in 2022). If you paid Medicare taxes for 30-39 quarters, the standard Part A premium is $259 ($274 in 2022).
Part A Hospital Inpatient Deductible and Coinsurance –
- $1,484 deductible for each benefit period ($1,556 in 2022)
- Days 1-60: $0 coinsurance for each benefit period in 2021 and 2022
- Days 61-90: $371 coinsurance per day of each benefit period ($389 in 2022)
- Days 91 and beyond: $742 ($778 for 2022) coinsurance per each “lifetime reserve day” after day 90 for each benefit period (up to 60 days over your lifetime)
- Beyond lifetime reserve days: all costs
Part B Premium – The standard Part B premium amount is $148.50 ($170.10 in 2022) (or higher depending on your income).
Part B Deductible and Coinsurance – $203 deductible ($233 in 2022). After your deductible is met, you typically pay 20% of the Medicare-approved amount for most doctor services (including most doctor services while you’re a hospital inpatient), outpatient therapy, and durable medical equipment (DME).
Part C Premium – The Part C monthly premium varies by plan. Compare costs for specific Part C plans.
Part D Premium – The Part D monthly premium varies by plan (higher-income consumers may pay more). Compare costs for specific Part D plans.