When you turn 65, you are eligible for insurance coverage through Medicare. This essentially means that you’ll be able to get affordable coverage on everything health related from hospital stays to doctor bills and prescription job. Even though this is great news, don’t think that you’ll easily reach a decision on what type of insurance plan you should get. As you may already know, navigating the Medicare problem can be quite difficult.

Before you actually start taking plans into consideration, it’s important to learn that there are four parts to Medicare, as well as ten supplement plans. The first part of the Medicare insurance plan covers inpatient care, such as hospitalization, lab tests, doctor services, as well as short-term nursing care. In case you’ve paid Social Security taxes for at least ten years, you won’t have to pay premiums for Part A of your Medicare program. However, you will have to pay a yearly deductible and coinsurance.

If you’re unfamiliar with the meaning of these terms, a deductible is an amount of money you have to pay before the insurance coverage kicks in. On the other hand, coinsurance represents a fixed percentage you have to pay against a claim once the deductible is satisfied. It’s worth noting that you’re automatically enrolled in this part of the program as soon as you sign up for Medicare.

The second part is optional, as it covers outpatient care. Nevertheless, the combination of the first two parts is considered to be traditional Medicare. It covers certain parts of your doctor bills, a limited number of prescription drugs, and outpatient treatment. You have to pay an annual deductible as well as a monthly premium for Part B.

The third part of the program is commonly referred to as Medicare Advantage. Private insurance companies use it to create their own plans and provide Medicare benefits in their own way. Note that you’ll still be getting coverage for the previous two parts of the program. In case you prefer a managed care plan, you should definitely choose Medicare Advantage. Depending on the plan you choose, you may get additional benefits like coverage for hearing, dental, and vision programs. Even though you’ll be paying lower deductibles and coinsurance, the premiums are higher when it comes to Part C.

Finally, Part D of the Medicare program is used to cover a portion of prescription drug costs. This represents an optional part of the program. In most cases, Medicare Advantage plans also include Part D benefits. It’s important to know that your insurance won’t cover all costs, as you’ll still have to pay a percentage. Depending on the level of insurance you get, you could be paying anywhere from 10 to 40 percent.

However, there is a way to be completely covered no matter what happens. This can be achieved through Medicare supplements, known as Medigap. There are ten different supplement plans, but only two of them completely cover you – plans F and G. As you can see, there are quite a lot of different options you can choose from. Since this is the case, you will have to come up with a way to decide on the right plan for you.

First of all, you should see whether your preferred health care providers are in your plan’s network, as you shouldn’t waste money on paying additional out-of-network charges. In case you need specific drugs or service, you should see which plans cover them. It’s recommended you take the cost of each plan into consideration. Know that you’ll be paying high insurance premiums if you go with a Medigap plan. However, this choice means that your out-of-pocket costs will be minimal. Although navigating the Medicare maze can be quite challenging, you just have to know what you’re looking for in order to make the right decision.