Medicare is a complex system of medical benefits aimed to help retired individuals have improved access to healthcare and insurance. But understanding Medicare can be complex in its own right. Therefore, individuals planning their retirement need to familiarize themselves with all the parts of Medicare. This will ensure that you get the best healthcare coverage for your health and your budget.

There are 4 parts to Medicare. Below we will explain Parts A, B, C, and D.

Medicare Part A

This part generally helps you pay for inpatient services at a hospital or facility, such as nursing homes or hospice units. However, the costs of premiums vary based on your Medicare-covered employment. Therefore, and typically, you must choose to enroll in Part B as well and pay both monthly premiums.

Medicare Part B

This part covers two types of health services, medically necessary and preventative services. Medically necessary services are services that are needed to diagnose or treat a medical condition. Preventive services are health coverage that helps to prevent or detect illness. A premium of 148.50 is standard. Generally, no co-pays are involved.

Medicare Part C

This is also known as the Medicare Advantage Plan. These plans bundle Parts A, B, and D, and all benefits will be bundled under a single plan with a private insurance company. This plan is excellent if you are looking for more coverage options. Or if you take prescription drugs and require dental, hearing, or vision coverage. Premiums vary due to being done through a private insurer.

Medicare Part D

Part D is called the Medicare prescription drug benefit. And is an optional benefit for those who want coverage for prescription drugs. You must have Parts A and B of Medicare to be eligible for this service.

Understanding Medicare is often complicated. But, it is essential to know the differences to be able to find the right plan for you. To learn more about Medicare coverage specific to you, visit medicare.gov and be sure to talk to your financial advisor about planning for the cost of the extra coverage cost you will need to factor into your retirement plan.