You might be surprised to find out that there are 4 types of Medicare insurance: Part A, B, C, and D. Each part covers different health care expenses and at varying costs depending on several factors. For instance, you might be eligible to get one part for free.
It is invaluable to know details about each part. If you fail to sign up for certain coverage when able, you may miss out on coverage, pay more in out-of-pocket fees than needed, and have penalties for delaying enrollment. Learn more about how to get the most out of Medicare below.
Part A of Medicare is half of Original Medicare. Medicare Part A provides coverage for inpatient care, which is why some refer to it as ‘hospital insurance.’ However, its coverage extends to:
- Skilled nursing facilities.
- Nursing homes.
- Hospice care locations.
- At home.
If you have paid enough into Medicare through past wages, you can enroll in the health insurance plan premium free. You will not have to pay a monthly fee for coverage. You may also be eligible for premium-free Part A if your spouse qualifies.
You will be responsible for out-of-pocket costs like the benefit-period deductible am coinsurance. Your benefit period starts the day you are admitted into inpatient care. The benefit period ends when you have stopped receiving inpatient care for 60 days in a row.
The deductible for Part A is $1,484 as of 2021. You will need to pay this in out-of-pocket fees before the plan begins to cover services. In addition, you will have to pay a per-day coinsurance as follows:
- Day 1 through 60 is $0.
- Day 61 to 90 is $371 per day.
- After 90 days, you will need to pay $742 for each “lifetime reserve day.” You have 60 reserve days in your lifetime. Your reserve days do not restart with each benefit period, as you only have 60 for your life.
- After using your 60 reserve days, you pay for all costs.
You will need Medicare Part B to cover outpatient fees.