What this essentially means for many people is that Medicare Part A can still leave them with a large medical bill, in the event they get sick. Medicare Part B covers outpatient surgery, doctor and emergency room fees, but Medicare Part B costs additional premiums and many people don’t choose this option. For those that only have Medicare Part A, they will find that they can still have a medical bill that amounts to a few thousand dollars or more, with a hospital stay because these extra fees aren’t covered.

When you only have Medicare Part A, you might not have to pay a premium, but even then, there are some people that do have to pay one. When you consider that not that many things are covered under Medicare Part A, it should only be considered major hospital coverage and you might want to consider supplemental policies. In fact, some people will choose the Medicare Part C coverage because it is a combination of Medicare Part A and Medicare Part B coverage and there might be some prescription drug coverage on some plans.

If you want to consider other supplemental policies, there are Medicare supplemental insurance policies and some people might look into Medigap coverage, which can cover some of the gaps that this lack in coverage might cause. Many people will consider Medicare Part A, Medicare Part B and Medicare Part D and still have gaps in coverage, so you can see that Medicare isn’t considered 100% coverage. For Medicare Part C policies, Medigap usually doesn’t apply, but there are some that think it provides lower costs and better benefits, so it isn’t needed.

Of course, every medical situation is different and many people will consider long term health care insurance, Medicare supplemental insurance and Medigap to try to cover the majority of the health care needs that might arise. It is just a matter of analyzing your needs and the premium costs, but some states have additional help for lower income individuals through the Medicaid program. Because you can’t depend on Medicare Part A to be a complete health care plan, you need to consider some other options for the most complete health care insurance plan. If you are in doubt about what your Medicare Part A covers, you can talk to a Medicare representative or private insurance company that offer Medicare policies.

Medicare can be confusing for some people with the changes that have taken place. There are two categories to Medicare now, which includes the “original” Medicare that is funded through the federal government and then the Medicare Advantage Plan, which is a privately insured program. No matter which program you are considering, they are broke into four categories, which are lettered by A, B, C, and D.

For those that are US citizens over the age of 65, under 65 with certain disabilities and those that have the end-stage renal disease which is kidney failure that requires dialysis or a transplant, you are eligible for the “original” Medicare plan, which offers the benefits under Part A. This part of the program covers inpatient care in hospitals, skilled nursing facilities or critical access hospitals, but hospice and home health care may also be covered, and no premium is involved through the “original” Medicare plan.

Medicare Part B pays for the medically necessary services and supplies that are provided, such as outpatient care, doctor’s services, physical therapists and any additional home health care needs. There is a premium involved for this part of the plan, but these expenses can add up very quickly, if you ever have health issues. In fact, without coverage for these important services, you can find yourself in deep financial trouble, should you ever get a serious illness. Many of the normal treatment processes are services offered under this coverage and without insurance, you might find yourself in financial ruin.

Medicare Part C is what is known as the Medicare Advantage Plan, and it combines Parts A and B, but it is through a private insurer approved by Medicare, but you will often receive lower service costs and you might receive more benefits than the government provided programs. The important thing to consider is that it combines Part A and Part B, so you are better covered, although, it might cost more in premiums. You receive the benefits of the caps on service and supply costs that the “original” Medicare Part B coverage provides.

Medicare Part D is the prescription drug coverage part of Medicare. This is a stand-alone program that you pay extra for, no matter whether you have the “original” Medicare or the Part C Advantage Plan. This part of the Medicare program is decided based on your needs because those that have regular prescriptions might have a serious need for this coverage.

No matter what parts of Medicare you have, it is helpful to understand Medicare Part B because this is where many unexpected costs can occur, in the event of illness. Because the “original” Medicare doesn’t cover everything, Medicare Part B can fill in many of the missing gaps. Of course, some people will take out additional Medicare supplemental insurance through AARP or similar insurance programs because they can cover the additional costs like co-insurance gaps, co-pay requirements and deductibles on insurance policies. This might be referred to as Medigap insurance by some insurers.

Another thing to consider is that some federal and state programs can help cover insurance costs through low income eligibility under Medicaid. For many, Medicare Part B is coverage that can make some serious financial differences, should you ever fall ill, however.

What Medigap is and if you need it, is a question asked by all medicare recipients. The usual answer is yes. Medicare Part A partially covers your hospital needs. Medicare Part B partially covers your medical needs and Part D is the prescription program and varies from company to company.

Medigap will help pay the costs that the other plans do not cover. The plans are provided by private insurance companies and was designed to cover the loopholes/gaps in the medicare plans. The companies that sell these plans are required by law to sell only standardized policies.

If you have Medicare Part A and B you may be eligible for Medigap. This program works with original Medicare only. You must have A and B to be eligible. In the event that both your spouse and you are receiving Medicare benefits, each of you must purchase separate policies. One policy per person is required, they do not cover more than one.

If you are enrolled in a Medicare Advantage Plan, Medigap will not be available. It is possible to cancel a Medigap policy if you choose a plan other than Original Medicare.

Medigap policies are controlled by state and federal laws. Their purpose is to protect you as the beneficiary. The policies are to be labeled “Medicare Supplement Insurance.” There are some states that will permit you to choose between 12 policies. These would be plans A through L via Medigap.

It is important to choose the right plan for your needs. Benefits vary and both physical and financial status need to be considered. There are plans with higher premiums due to the coverage they provide. What this usually means is a lower amount of co-pay that you must provide. These are plans A-J. Their basic benefits are co-pay for Medicare Part A and B and blood transfusions up to 3 units. Some may include Part A and B deductibles, shilled nursing co-insurance and excess charges from Part B. Also covered by some are emergency services outside of the United States, some at home treatment, prescription drugs and preventive care.

The lower premium policies, K-L will require higher out of pocket expense. They are basic and do include Medicare Part A hospital costs, Part A and B co-pay or co-insurance and hospice care. They may also include Part A deductibles and skilled nursing care.

It is important to choose carefully, again depending on your financial status and physical condition. The coverage is the same, but the premiums vary from one company to another. By law, they are required to provide the same benefits.

If you have Part D prescription coverage it is probably better than the coverage provided by Medigap policies. This has become a standard observation. It is not advisable to cancel your Part D just because you Medigap policy has drug coverage. Check out your allowances line by line, or speak with a Medicare representative. Visiting sites on the internet can also provide you with the information that you will need to make the right choice. Do not wait until you are in the hospital or in need of medical care to choose this valuable policy.

Part B is the traditional coverage that pays for other things like the services of your doctor or medical supplies. By 1997, Congress realized that there were managed health care programs that offered many more benefits for the same cost as Medicare. It passed part C, the Medicare Advantage program that allowed Medicare recipients to use private plans for coverage.

Part D Medicare began in 2006 and filled a gaping hole in the Medicare part A and B plans. It covered prescription drug costs for seniors on part A and B. Many seniors keep their visits to doctors and hospitals lower because of prescription drugs, yet often these same drugs cost a large portion of their retirement benefits. Medicare Part D defrayed this expense.

There are a number of plans for Medicare recipients to sort through. Some have a deductible that you must first pay out of your pocket but most of them don’t. There are differences in the types of medicines covered because some plans offer bonus drugs that weren’t included in the original Medicare proposal. Examples of these are prescription vitamins and Viagra.

Choosing the right Medicare part D plan depends on your prescription needs. Some plans are limited, but if you only take an antibiotic occasionally, they’re far cheaper and save you money. Other plans offer more coverage but also cost more. These types of plans are particularly important for the senior that takes several expensive pills every day. The price of the insurance is more but the coverage leaves them with a savings.

If you’ve followed the health care debate, you’ve heard the term donut hole used frequently. This time, the name fits quite well. The outside of the donut is delicious and why we all buy them. As you eat it, the outside disappears and you get to the center. There’s nothing there. That’s what happens to many people with expensive prescription drugs.

Most part D plans only cover $2250 worth of prescriptions per year. If the insured spends that amount in prescription drugs by September, they still have premium to pay to the end of the year. However, they no longer receive any benefits.

Just like a donut hole, there’s the other side of the donut. If you bills for prescription drugs reach the catastrophic level, $5100 for the year, then that you again have coverage. Most seniors, however, fall short of that amount but do run out of coverage before the year ends. An example would be a person paying $250 a month in prescription drugs, an amount paid by many seniors today. In nine months, they’d use all the Part D benefits and reach the donut hole. Since there drug costs are static, they would only reach $3,000 by the end of the year, but still have to make premium payments.