Original Medicare Part A, which covers hospitalization, has a deductible of $1184. Original Medicare Part B, which covers out-of-hospital services, generally covers 80%. You can get these gaps in coverage filled by purchasing a medicare supplement (PPO) or a Medicare Advantage Plan (HMO). The Medicare Advantage Plans are generally much more affordable, and often free! Also remember that Original Medicare does not cover drugs, so you'd have to get that coverage through a Medicare Supplement or Advantage Plan as well.
Co-Founder, TermInsuranceBrokers.com, Goldenzweig Financial Group, Las Vegas, Nevada
In short, Original Medicare (Parts A & B) pay for approximately 80% of your healthcare expenses - Part A is your hospital insurance and Part B is your physician insurance. The deductible for Part A in 2014 is $1,216 - $147 deductible for Part B.
You are responsible for the other 20% of your health care expenses. You can cover all or some of these expenses by securing a Medicare supplement plan (a.k.a. Medigap plan) or a Medicare advantage plan. You MUST keep paying your premiums for your Original Medicare coverage under either scenario.
Please note, Original Medicare does not cover prescription drugs. If you want to add prescription drug coverage, you'll need to secure either a Medicare Advantage plan that includes drug coverage (MAPD plan) or a separate stand-alone part D prescription plan.
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You are responsible for the other 20% of your health care expenses. You can cover all or some of these expenses by securing a Medicare supplement plan (a.k.a. Medigap plan) or a Medicare advantage plan. You MUST keep paying your premiums for your Original Medicare coverage under either scenario.
Please note, Original Medicare does not cover prescription drugs. If you want to add prescription drug coverage, you'll need to secure either a Medicare Advantage plan that includes drug coverage (MAPD plan) or a separate stand-alone part D prescription plan.