Part A: This part of Medicare covers you for hospitalization, hospice and skilled nursing.
In 2021 the Part A hospital deductible is $1,484.00
Part A is generally free if you have worked or your spouse has worked 10 years in the US (40 quarters). If you haven’t worked the 40 quarters than you will have to pay to get Part A. If you moved from another country and have lived in the US for a minimum of 5 years, you can purchase Part A, as well.
Part B: this part of Medicare covers you for doctor services, outpatient services, lab tests, medical equipment, ambulance transportation, etc…
The Part B premium in 2021 is $148.50 per month. If you are single and earn over $88,000, you will pay more. If you are married and file jointly and earn over $176,000, you will pay more, as well. Social Security applies a 2 year look back period on income.
The annual Part B deductible is $203.00
Part C: Part C refers to Medicare Advantage Plans. Under this program, Medicare will pay a private company of your choice a monthly premium and that private company will administer your Medicare.
Medicare Advantage Plans will cover your Part A and Part B medical expenses and will also include and cover Part D drug coverage.
Advantage plans will generally include extra benefits that you will not receive with original Medicare.
Part D: This part of Medicare refers to prescription drug coverage. You can Part D in one of two ways.
You can purchase a stand-alone drug plan. This generally happens when you purchase a Medicare Supplement policy. With a stand-alone drug plans you will pay a monthly premium. Additionally, if you are single and earn over $88,000.00 you will pay IRMAA. This is a surcharge that is added to your Part D drug plan premium. If you’re married, file jointly and your income is over $176,000, the same charges will apply.
The other way to get drug coverage is through enrolling in a Medicare Advantage Plan (MAPD). This IRMAA income related charge will apply in this scenario, as well.