What’s Medicare all about? Can anyone explain how it works?

Medicare Forum
1

I’ve been hearing a lot about Medicare, but I’m still kind of confused about what it covers and how it works. Can someone break it down for me?

2

Sure, Medicare is a federal health insurance program mainly for people 65 or older, but it also helps some younger folks who have disabilities. There are four parts: Part A, which covers hospital stays, Part B for doctor visits, Part C, also called Medicare Advantage, which combines A and B but through private insurers, and Part D for prescription drugs.

3

@Aza
Thanks! Is it true that Medicare doesn’t cover everything?

4

Finley said:
@Aza
Thanks! Is it true that Medicare doesn’t cover everything?

Yeah, that’s right. Medicare doesn’t cover things like dental care, hearing aids, glasses, or long-term care. You might need something like Medigap or Medicare Advantage to fill some of those gaps.

5

@Aza
Got it. What’s Medigap?

6

Finley said:
@Aza
Got it. What’s Medigap?

Medigap is extra insurance you can buy to help cover costs that Medicare doesn’t, like copays and deductibles. You have to already have Medicare Parts A and B to get it.

7

If you’re still working at 65, should you sign up for Medicare or just keep your work insurance?

8

Abi said:
If you’re still working at 65, should you sign up for Medicare or just keep your work insurance?

It depends. If you have health insurance through your employer, you can delay signing up for Medicare Part B and not get penalized. Just make sure you sign up within 8 months of leaving your job or losing that coverage.

9

@Corey
Oh cool, I didn’t know about that deadline. Thanks for the heads up!

10

I’ve heard of penalties for signing up late. What’s that about?

11

Harley said:
I’ve heard of penalties for signing up late. What’s that about?

Yeah, if you don’t sign up for Part B when you’re first eligible, and you don’t have coverage through a job, they’ll charge you a 10% penalty for every year you delay. Same thing with Part D for prescriptions. The penalty for that one is based on how long you went without creditable drug coverage.

12

@Arden
Yikes, didn’t realize it was that much of a deal. Glad I know now.