Understanding the basics of Medicare

Video Duration: 3 minutes 11 seconds

Understanding Medicare: Elapsed time 0 seconds [00:00]

Understanding Medicare

Medicare can be difficult to navigate if you’re new to the program. Understanding a few basics can help you make the most of your benefits.

Medicare is the government health insurance plan for people 65 and older. It may also cover younger people with disabilities and people with end stage renal disease. It’s made up of 3 different parts. Part A is hospital insurance, Part B is medical insurance and Part D is prescription drug coverage. Original Medicare includes Part A and Part B.  

There are also Medicare Advantage plans, known as Part C. They’re Medicare-approved plans that are offered by private insurers.

Let’s go over each part.

Part A and Part B: Elapsed time 43 seconds [00:43]

Medicare Part A includes coverage for hospital, skilled nursing and hospice care. When you apply for Medicare, you’re automatically enrolled in Part A. Most people don’t pay a monthly premium, but it does have a deductible.

Medicare Part B helps cover outpatient services like doctor visits, vaccines and labs. It may also include home health care and medical equipment. Unlike Part A, Part B does include a monthly premium.

Medicare Supplement Plans: Elapsed time 1 minute 12 seconds [01:12]

Medicare Supplement Plans are also known as Medigap plans. They can help pay some of the costs for services that Medicare Part A and Part B cover. This can include things like deductibles and coinsurance. The amount you’ll pay depends on the policy you buy.

Part C: Elapsed time 1 minute 28 seconds [01:28]

Medicare Advantage plans, or Medicare Part C, are offered by private insurers who contract with the federal government. Part C plans bundle Part A and Part B and usually include Part D, prescription drug coverage. They may also include extra benefits, but check each plans details to learn more.

The cost of a Part C plan depends on what you choose, but it usually includes a monthly premium and deductible.

Not all doctors participate in Part C, so if you have a doctor or hospital you prefer, it’s important to know whether they participate in your plan.

Part D: Elapsed time 2 minutes 04 seconds [02:04]

Medicare drug coverage plans are also known as Part D. They’re meant to help with the cost of prescription drugs. Part D is offered through private insurers, and they have premiums, out-of-pocket costs and can have annual deductibles.

Before enrolling in Part D, it’s important to understand how your prescriptions will be covered. Each plan also has its own formulary, which is the list of drugs they cover, so before selecting a plan it’s important to compare how your prescriptions are covered. USAA.com/pdp has a tool to help.

Your next steps: Elapsed time 2 minutes 40 seconds [02:40]

Medicare can be complex. It’s important to do your research before enrolling. This includes knowing if your doctors and medicines are included in the plan you’re considering.

USAA believes that everyone should have the right coverage for their health care needs. We can help review your options and help you make the best decision for your needs.

You can schedule a call to speak with a licensed insurance agent or call us directly at 800-531-9164.

Description of visual information: [Medicare solutions provided by USAA Life Insurance Company, San Antonio, TX, and through USAA General Agency, Inc. (LGA) (known in CA and NY as USAA Health and Life Insurance Agency), which acts as an agent for select insurance companies to provide products to USAA members. LGA representatives are salaried and receive no commissions. However, LGA receives commissions from those companies, which can include compensation based on the total quantity and quality of insurance coverage purchased through LGA. Plans not available in all states. Each company has sole financial responsibility for its own products.] End of description

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