What are the Parts of Medicare?

Part A - Hospital Insurance

Hospital Care
Skilled Nursing Facility Care
Hospice
Home Health Care

Part B - Medical/Doctor Insurance

Doctor visits
Mental health care
Outpatient surgery
Lab tests
Medical equipment

Part C - Medicare Advantage Plans

Everything parts A and B cover
Many plans cover prescription drugs
Many plans cover dental and vision

These are optional plans that usually combine Parts A, B and D. Premiums for these plans can range from $0 to $250 a month or more.

Part D - Prescription Drug Coverage

There is a range of premiums for these plans.

Medicare Supplement or Medigap Plans

Not a “PART” of Medicare, it is necessary this definition be included for purposes of clarification. These are optional plans. You will stay on Parts A and B and should get a stand-alone prescription drug plan with any Medicare supplement plan. There is a wide range of plans and premiums for these types of plan

What Are The Penalties Involved in Medicare?

Part B Penalty

If you don’t sign up for Part B when you are first eligible, you MAY have to pay a late enrollment penalty for as long as you have Part B. Your monthly premium for Part B may go up 10% for each full 12-month period that you could have had Part B, but didn’t sign up for it. If you’re allowed to sign up for Part B during a Special Enrollment Period, you usually don’t pay a late enrollment penalty (i.e. if you had creditable coverage from an employer group plan).

Part D Penalty

This is an amount that is added to your Part D premium. You MAY owe a late enrollment penalty if at any time after your Initial Enrollment Period is over there is a period of 63 or more days in a row when you don’t have Part D (prescription drug coverage) or other creditable prescription drug coverage. Currently, the late enrollment penalty is 1% of the national base premium multiplied by the number of full months that you were eligible but didn’t join a drug plan and went without creditable coverage.