What Are The Costs Of Medicare?

Here are the four major factors that will determine your Medicare costs:

· Which parts of Medicare you choose

· How many years you've worked

· How much you've earned

· Whether you select government-sponsored Medicare or Medicare Advantage through a private insurer

Medicare has four separate parts: Parts A, B, C and D.

What Is Part A (Hospital Insurance)?

Part A is hospital insurance that helps cover inpatient care in hospitals, skilled nursing facilities, hospices and home health care.

What Is Part B (Medical Insurance)?

Part B helps cover medically-necessary services like doctors' services, outpatient care, home health services and other medical services. Part B also covers some preventive services.

What is Part C (Medicare Advantage Plan)?

A Medicare Advantage Plan (like an HMO or PPO) is another Medicare health plan choice you may have as part of Medicare. Medicare Advantage Plans, sometimes called "Part C" or "MA Plans," are offered by private companies approved by Medicare.

What is Part D (Prescription Drug Coverage)?

Medicare offers prescription drug coverage to everyone with Medicare. If you decide not to join a Medicare drug plan when you're first eligible, and you don't have other creditable prescription drug coverage, or you don't get Extra Help, you'll likely pay a late enrollment penalty. To get Medicare prescription drug coverage, you must join a plan run by an insurance company or other private company approved by Medicare.

If you've worked at least 10 years, you will be able to take advantage of a "premium-free" Part A program. If you haven't worked at least 10 years, you can opt to purchase Medicare Part A plan and pay a monthly premium. Medicare Part B works a little differently. This medical insurance component has a monthly premium that costs about the same for most people, and a small deductible. You can choose from doctors who "accept assignment" and will bill no more than what Medicare pays. You can also select other doctors but you will need to pay the difference.

Medicare Advantage, or Part C, is handled through private insurance companies who have varying premiums and deductibles. You can choose to get Part D coverage as part of your Medicare advantage plan, or opt only for medical and hospital coverage.

Finally, Part D is only available through private insurers. If you plan on getting Part A and B coverage through the government, you'll still need to compare insurance companies for Part D coverage.

As you can see, Medicare costs can be different for every individual. It can take some time and research to find the right mix for you - so be sure to research thoroughly and compare your options.

Mikelle Streicher, PhD, RN, is Chief Marketing and Sales Officer for Florida Health Care Plans (FHCP), a leader in providing health care services and health education in Volusia and Flagler Counties in Florida.