Medicare Benefits-What Does it Mean to be Covered?

Medicare was created to provide health insurance coverage to senior citizens and people with other qualifying illnesses and disabilities. Since 1965, it has provided many with access to and the means to pay for their health care. The traditional plan does not cover every expense, however. It is important to understand Medicare benefits in order to get the most out of your plan.

Medicare is divided into four parts. Parts A and Medicare Part B were what comprised the original program. Parts C and D came to be a part of the picture as time passed. Medicare Part A is the part of your Medicare benefits that cover hospitalization costs such as room and board, nursing care, home health and hospice care.

Usually, there is no premium for Medicare Part A because funding comes from the taxes citizens pay while they were employed. When you enroll in the program, you are automatically enrolled in Part A. This is the only part of the four parts of the program that is automatic upon enrollment. There is typically no monthly fee for Part A.

Part B of Medicare benefits options provides for coverage of services outside a hospital setting. Doctor visits, laboratory tests, ambulance services and rehabilitation services are some of the services covered by Part B. Part B involves a monthly premium and a yearly deductible. These can be deducted from your Social Security check.

Part D is the part of the program that covers prescription drugs. Everyone with traditional coverage is eligible for Part D. You choose the plan provided by a private insurance company and pay a monthly premium. Prescription drug coverage can help lower the cost of prescription drugs.

Important Medicare benefits can be garnered form participation in Part C, also known as Advantage Plans. These plans are provided by private insurance companies but are regulated by the government. These plans provide all of the benefits of Parts A and B of the traditional program as well as additional benefits.

These plans are designed to cover more out of pocket costs than the traditional program, thus saving you money in the long run. There is a good deal of variety in the composition of these plans. They are often found in the form of HMOs (Health Maintenance Organization) or PPOs (Preferred Provider Organization). Each must include the basic benefits outline the government. Combinations of benefits beyond the standard and costs for advantage plans do vary from company to company.