Medicare Plans vs Parts
Why is it important to understand the difference between a Medicare Plan and a Medicare Part? Because Medicare Parts A, B, C, and D cover different costs and providers than Medicare Plans A, B, C, and D. This is also an easy way to determine if an individual (i.e. agent, insurance representative, financial advisor) knows what they are talking about.
A Medicare Part references the major categories of Medicare insurance.
- Part A covers 80% of hospital costs. These costs include inpatient care, skilled nursing facility care, nursing home care (not including custodial or long-term care), hospice care, and home health care.
- Part B covers 80% of doctor costs. These costs include preventative services and medically necessary services or supplies. Preventative services include items like vaccines that prevent an illness from occurring. Services that can detect diseases at an early stage are also considered preventative as treatments are more likely to be effective. Medically necessary services or supplies are required to diagnose or treat your medical condition. This would include items such as Durable Medical Equipment (DME) and a limited list of outpatient prescription drugs. Other items covered under Part B include clinical research, ambulance services, and mental health services.
- Part C (aka Medicare Advantage) replaces your Part A & Part B coverage, but you still pay the premiums for them! To learn more about this type of plan check out our article, Advantage or Disadvantage: Should I Get A Medicare Advantage Plan?
- Part D is also referred to as Prescription Drug Plans (PDPs). This coverage is commonly used at a pharmacy when purchasing your prescription medications.
Medicare Plans refer to the various Medicare Supplement Plans including A, B, C, D, F, G, K, L, M, and N. These plans all work with your Medicare Part A and Part B to provide more complete coverage. Check out the chart below for details on these plans.