Overview of Medicare Parts A-D

• Medicare has the following parts:
  - Part A covers hospital Insurance, including inpatient hospital care, inpatient care in a skilled nursing facility, home health care, and hospice.
  - Part B covers medical Insurance, which includes the following services: doctor's visits, ambulance transportation, outpatient therapies, and a wide range of other services. Part B is usually referred to as "original Medicare" and is a fee-for-service, where you pay a deductible, a co-insurance and a premium and Medicare pays the rest.
  - Part C, also known as Medicare advantage, combines both Part A and B, and is offered by private insurance companies funded by Medicare. Part C includes alternative non fee-for service options like HMOs or PPOs. You much choose part A & B, or C -- you cannot have all three.
  - Part D covers prescription drugs.
  
  

Medicare Deductibles by the Part

• Deductibles vary by Medicare drug plan. Medicare deductibles usually change every year. The 2009 deductibles are as follows:
  - Part A, which covers hospital type care, is $1068 and covers the first 60 days of a hospital stay. Beneficiaries pay co-insurance for longer stays and pay the entire amount per day after 150 days.
  - Part B, or the "medical insurance," is $135 per year.
  - Part C. Depending on which type of plan you select if you opt for Part C your deductibles will vary and may be different from Part A and B deductibles. You must contact each private provider to get deductible information for plans under Part C.
  - Part D, or the prescription drug coverage insurance often referred to as "EPIC," offers two different programs: the Fee Plan for those whose annual income is less than $20,000 ($26,000 for couples) and the Deductible Plan for those with higher incomes. If enrolled in this plan, you would pay full price for your prescriptions until you have met an annual deductible, based on your income. Under the Fee Plan deductibles are no higher than $295, and some have no deductible. Deductibles under the Deductible Plan range from $530-$1,230 ($650--$1,715 for couples) depending on your plan.
  
  

Making Changes to Your Plan

• While you cannot make specific changes to your plan or your deductibles, you can switch from Parts A and B to C once before May 15th of each year. May 15th is often dubbed the "lock-in" date. An exception is made for those patients under Medicaid, a part C Medicare savings program, or those who live in a nursing home. These people are eligible to switch plans once a month.
  Part D changes can be made between November 15 and December 31 each year.
  
  

Meeting your Annual Medicare Deductible

• Medicare deductibles must be paid annually. You can meet your deductible via any combination of covered expenses--it is not necessary to meet a separate deductible for each different kind of service offered under Part B that you receive. Medicare will apply your deductible on the first claims approved and finalized.
  
  

Processing Medicare Deductible Payments

• Do not send your deductible to Medicare; send any Medicare deductible payments directly to your doctor. Your doctor's office will process the payment so that Medicare can track it. A Medicare Summary Notice (MSN) statement will be sent to you regularly in the mail and will explain any amounts applied toward your annual deductible.