Part A - Hospital Insurance
Part B - Medical/Doctor Insurance
Part C - Medicare Advantage Plans
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
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.