I'm recently retired and very confused about Medicare and how it works. Can you help?
It can be confusing!
Here are the basic parts of Medicare and what they do:
Medicare Part A, hospital insurance.
Often called Original Medicare, Part A covers care in hospitals and skilled nursing facilities, including hospice and home health care. The Part A premium is free if you paid Medicare taxes for at least 40 quarters. There is a deductible of $1,600 for 2023. If you stay in a hospital for more than 60 days, you will pay co-insurance.
Medicare Part B, medical insurance.
Part B covers doctor's visits, outpatient care and some home health care. It isn't free. For 2023 you have a deductible of $226 and you will pay a premium of at least $164.90 per month. After you have spent the deductible, you pay 20 percent of expenses, unless you have a Medicare Advantage plan or purchase supplemental coverage. You must enroll at age 65 or you will be penalized.
Medicare Part C (Medicare Advantage)
Part C does the job of Parts A and B and is sold by private insurers. Most plans include prescription drug coverage. For 2023, the average monthly premium is $18.
Medicare Part D, prescription drug coverage.
You won't need this if you have Medicare Advantage (Part C) with drug coverage. Part D is standalone private prescription drug insurance. You will need it if you choose Part A and Part B (original Medicare) and you want your prescriptions covered.