Medicare questions? Here’s what you need to know from A to D.

Parts of Medicare

What are the most popular plans?

Consider:

For more information on the costs of health care in retirement:

See our complete research on health care costs in retirement.

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FULL TRANSCRIPT:

Parts of Medicare

Part A:

• Covers hospital care costs.
• Part of Traditional Medicare managed by the U.S. government.
• You should know: It’s free at 65 if you or your spouse have worked and paid taxes for 10 years.

Part B:

• Covers outpatient & doctor visits.
• Also part of Traditional Medicare managed by the U.S. government.
• You should know: It’s not free. Monthly premiums are set annually. You also might have a co-pay.

Part C:

• Covers hospital and physician costs.
• Also known as Medicare Advantage offered by private insurance companies.
• You should know: Most plans have an out-of-pocket max. They also may cover dental, hearing, and vision costs.

Part D:

• Covers prescription costs.
• Can be added to Traditional Medicare (A&B) or Medicare Advantage (C).
• You should know: Costs will vary depending on the plan you choose and prescriptions you need.

Medigap:

• Covers out-of-pocket costs such as co-pays and deductibles.
• Can be added to Traditional Medicare but not Medicare Advantage.
• You should know: You can get Medigap later, but you might pay more for services.

What are the most popular plans?

• 35% of enrollees add Traditional Medicare to employer-sponsored coverage.
• 32% of enrollees choose Medicare Advantage + Part D.
• 21% of enrollees choose Traditional Medicare + Part D + Medigap.

Consider:

• Your travel plans. If you want to travel internationally, consider either a Medicare Advantage plan or a Medigap plan that offers foreign travel benefits.
• Your health status. If you have health issues, consider a plan with more coverage.
• Employer-sponsored health care. If you’re still working, your spouse has employer-sponsored benefits, or you have retiree health benefits, consider how the plans work together.
• Your preferred doctor. Find out if your favorite health care provider or network accepts the plan you want to choose.
• Your costs. Make sure you understand the different deductibles, co-pays, coinsurance, and maximum out-of-pocket costs that come with the plans you’re considering.

* In certain circumstances, you may qualify for Medicare at a younger age than 65.