There are 4 main parts of Medicare, these are A, B, C, and D. Keep in mind that each part will help you pay for a healthcare service that is specified before. In addition, each part comes with a different price tag. However, the price will depend on the plan you choose, and what kind of health care services you need.
Think of Medicare as building blocks, as you can piece them together in a different way, so they offer the service and coverage you need. To help understand what plan will offer you the best coverage, you need to learn a little more about each part, what they cover, and how much will they cost you.
You must understand that no matter what plan you choose, Medicare is not free. It is the payment that will be used to help pay for your medical health services, with their help the payment process is made easier.
What does your Medical Cost Include?
● Premiums – These have to be paid outright, and the rest you co-pay on. Meaning that Medicare will share the cost. This is a fixed amount that can be paid directly to Medicare, or to an insurance company associated with Medicare. These are charged monthly and can change over the course of months or years.
● Deductibles – This is a set amount that you must pay from your pocket before you Medicare Plan starts paying.
● Co-payments – Is a fixed amount that you pay when you use a service that is covered by Medicare. For instance, you will pay $20 for each doctor visit, or $12 for each prescription you want to get filled.
● Co-insurance – This is where Medicare shares the cost with you. For instance, your Medicare plan covers a certain service, and when you use that service you will pay 20% of the total amount, while your plan will pay the remaining 80%.
Things you need to consider
Out of Pocket Payment – This is the total cost you have to pay during the year, and it does not include your cost of any service that is not included in your plan or any premium service. Once you have reached the maximum of your out of pocket payment, then your Medicare plan will pay 100% of the services that are covered in your plan for the year.
Cost Sharing – You need to look at the bigger picture and determine how much you can pay monthly, and what your lifestyle costs are. With a Medicare plan, you might be sharing costs, but there are times when you will need to put up money.