As we mentioned in the last post, Part A and Part B constitute the basic foundation of Original Medicare. However, it is vital to know what they actually cover, in order to know how the system works. Follow the link to learn about Part A, Part B, and private insurance. 
On the Red, White, and Blue Medicare card, Part A is listed as “Hospital.” Think of it as your basic insurance for the services provided in a hospital building. It includes critical access hospital, hospice, skilled nursing facility, and emergency services. When a physician generates a bill for any of these services, Part A of Medicare is what pays for them.
Part B is listed as “Medical” on the Medicare card. You can basically think of it as coverage for doctor’s office services. It also does cover for medical equipment like oxygen, and for certain medications as long as they are infused drugs administered in a hospital setting (such as a Morphine Drip). When a doctor generates a bill for anything related to these types of services, Part B it the benefit that pays those bills.
Some people may think that Part A and Part B are all they need. Though it is legal, its not a particularly wise idea to have no other coverage. The reason is that Part A and Part B do not cover everything. If you only have Part A for example, you will need to satisfy a deductible of $1,132 each time you are hospitalized and then pay 20% of your bills after that. If you only have Part B, you will pay an annual deductible of $162 and then 20% of your bills from the doctor’s office after your deductible is satisfied. With hospital and doctor’s bills frequently totalling tens of thousands of dollars, there is a lot of liability that you are leaving yourself open to, by only having Original Medicare. This is the reason that most seniors will choose to purchase some additional coverage.
There are two main varieties of insurance policies available for purchase; Medicare Supplement plans (sometimes referred to as “Medigap policies”) and Medicare Advantage plans. These two types of insurance work differently from each other, and in the next post we will dive into how they work and the benefits of each.
As always, this information can be difficult to wade though on your own. Give us a call at (425) 232-5982 if you have any questions or wish to schedule a one-on-one consultation with our staff.
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