The Four Parts of Medicare
People who are approaching retirement age often look forward to the free or inexpensive healthcare services they will be eligible to receive, while simultaneously worrying about their out of pocket healthcare costs. Healthcare for retirees is anything but a freebie, and as the cost of living increases and the social safety network erodes, paying for Medicare will probably only get more worrisome. Understanding the complexities of Medicare is no one’s idea of a good time, but it is essential for building a realistic retirement budget. Remember that the first step to enjoying walks on the beach in your retirement is being healthy enough to travel to the beach and take a walk. For advice about choosing affordable Medicare plans and other aspects of your retirement finances, contact a Bronx estate planning lawyer.
Part A: The Closest Thing American Seniors Can Get to Free Healthcare
Medicare part A includes inpatient treatments, such as hospitalizations and nursing home care. It has the reputation for being free because you do not pay premiums. Medicare part A charges deductibles and copays, though, when you use its services.
Another word of caution about Medicare part A is that its nursing home coverage is more limited than what most nursing home patients need. Officially, Medicare pays for 100 days of nursing home care, but it might even stop paying sooner than that. Nursing home care is a major source of financial hardship for seniors. It is important to plan for how you will pay for it, even if you are sure that you will eventually need to apply for Medicaid nursing home benefits.
Part B: Medical Insurance as You Know It
Medicare part B pays for a variety of outpatient services, such as the following:
- Doctors’ office visits
- Home health aide services
- Medical devices, such as wheelchairs and TENS units
- Well check ups
- Screenings
- Vaccines
Medicare part B beneficiaries pay premiums in addition to deductibles and copays for certain services.
Part C: The Private Health Insurance Option
Medicare part C is also known as Medigap and Medicare Advantage. It enables you to get your Medicare part A and part B benefits through a single plan, which you purchase through a private health insurance company instead of directly from Medicare. Medicare part C plans might offer additional services that you do not find in part A and part B plans, such as subsidizing the cost of hearing aids and gym memberships.
Part D: Prescription Drug Coverage
Medicare part D covers prescription drugs. It divides the drugs into six categories, according to what portion of the cost Medicare subsidizes. In the highest category are inexpensive generic drugs, which are free to Medicare beneficiaries. The lowest category includes new, expensive drugs, in which case Medicare covers little to none of the cost.
Schedule a Confidential Consultation With a Bronx Estate Planning Attorney
An estate planning lawyer can answer your questions about paying for Medicare and other retirement expenses. Contact Cavallo & Cavallo in the Bronx, New York to set up a consultation.
Source:
medicare.gov/basics/get-started-with-medicare/medicare-basics/parts-of-medicare
