Medicare Part A and Part B Simplified
In the past, your only option was to enroll in Medicare Part A and Part B. In addition, you can also enroll in a Medicare supplement to help cover expenses that Medicare Part A and Part B do not cover. Medicare Part A and Medicare Part B are also known as Original Medicare. To simplify, we will say that Part A covers hospitalization and Part B covers medical appointments. Each one covers much more than that, but that is not the focus of this article. What you need to know is that both should have adequate coverage.
Original Medicare will provide health coverage, but it is not far enough. Let’s talk about coverage and costs. Medicare Part A will not cost you anything while your spouse has worked 10 years or 40 quarters and has paid Medicare taxes during that period. Medicare Part B currently has a cost of approx. $100/month and will increase over time. Therefore, for most people, you will have to pay around $100 a month to get Medicare A and B.
So what do you buy these $100 a month? Well, you’ll have a large franchise for hospitalizations, plus a small franchise for medical appointments. After that, you enter a traditional 80/20 division. This sounds quite traditional as insurance accepts that there is a BIG, HUGE, MASSIVE problem! Did i get your attention? There is no maximum out-of-pocket value with original Medicare! Let me repeat this if you have fallen asleep. There is no maximum out-of-pocket value with original Medicare. That is why you MUST take a Medicare supplement with a minimum coverage that covers this 20%. Otherwise, you could end up losing your NEST EGG during a hospitalization!
In addition, you will need a Medicare Part D drug plan to help cover your prescription drugs, since Original Medicare does not provide prescription drug coverage. The national average for the award of a prescription drug plan is $38/month. You can pay around $200/month for a Medicare supplement. All in all, you are now looking for $ 338/month for Medicare and Part D and Part B drug coverage. The main benefit of having Original Medicare with a supplement is that you know what your medical costs will be. Every month and you can go to any provider that accepts Medicare! The alternative is to look for a Medicare Advantage plan like Humana or Health Springs to save money.