Learn your ABC and D’s of Medicare

Whether you’re new to Medicare or you’ve had it for years, there’s a lot to learn. That’s especially true in the fall, when many Medicare plans have their open enrollment period.

Medicare is the federal health insurance program for people 65 or older, people younger than age 65 with certain disabilities, and people of all ages with end-stage renal disease (ESRD: permanent kidney failure requiring dialysis or a kidney transplant). Original Medicare has two parts: Medicare Part A (hospital insurance) helps cover inpatient hospital care, hospice care, some home health care and up to 100 days in a skilled nursing facility when certain conditions are met; Medicare Part B (medical insurance) covers doctor visits and services, surgery, outpatient care, medical supplies and equipment, mental health services, physical and occupational therapy, and preventive services, including physical exams, screenings and flu shots.

Original Medicare has deductibles, co-payments and coinsurance that can quickly add up. That’s why many people enroll in private health plans to help cover the costs Medicare does not. There are three main types of plans:

Medicare Supplement Insurance helps pay for part or even all of the health care costs, or gaps, Medicare does not cover. All Medigap Plans offer the same basic benefits; however, many will offer additional benefits so you can choose the benefits that meet your needs.

(Part C)—A Medicare Advantage Plan is a type of Medicare health plan offered by private companies that contract with Medicare to provide all your Original Medicare Part A and Part B benefits. Most Medicare Advantage Plans include prescription drug coverage and may offer additional benefits.

Medicare Part D provides coverage for generic and brand-name prescription drugs. Medicare Part D plans can be used to add prescription drug coverage to a Medigap Plan, a Medicare Advantage Plan or a Medicare Cost Plan. These plans can vary by drugs covered, how much you pay toward a prescription and the network pharmacies that can be used.

I would be happy to talk with you about Medicare and your circumstances and to explain the Medicare supplemental options available. Contact me at (952) 927-2752 or gmilbert@aaaminneapolis.com.

Guy Milbert has worked at AAA Minneapolis since 1990 as AAA’s long-term care and health-insurance planning specialist and is an independent agent for Blue Cross Blue Shield of Minnesota.