Medicare Part A and Part B, also known as Original Medicare, go well together. The question is, what makes them different? Both of them can make a significant difference in out-of-pocket costs. Both play a crucial role in any Medicare Plan. While both are technically optional, they are both required for someone who wants to get more out of their policy.
There’s a Difference in a Monthly Cost
This contrast is interesting because of the role Part A plays. For some, Medicare Part A comes with no premium. To get premium-free Part A, you must:
- Already receive retirement benefits from Social Security or the Railroad Retirement Board (RRB).
- Be eligible to receive benefits from Social Security or the RRB.
- Have had Medicare-covered government employment.
- Have ESRD and meet specific criteria.
- Receive disability benefits from Social Security or the RRB for 24 months.
On the other hand, for those who cannot get premium-free Part A, the standard cost is roughly $252 per month but can go up to $458.
Part B is different as it does not offer a premium-free option. The typical Part B premium is roughly $144.60 per month.
Differences in Services Covered
The context and types of services covered highlight the greatest contrast between Medicare Part A and Part B. Medicare Part A covers services within the inpatient setting. Part B, on the other hand, covers expenses related to outpatient costs.
To expand further, the specific services Part A covers are:
- Inpatient hospital stays (also includes meals, pain management, and the room you’re staying in)
- Hospice care
- Skilled nursing facility care
- Blood transfusion in the hospital
Part B covers services such as:
- Doctor visits
- X-rays
- Ambulance services
- Cardiovascular assessments and treatments
- Preventive care (i.e., cancer screenings)
Role in Medicare Advantage and Supplement Plans
While both Part A and B are optional to a degree, it’s the idea that some will assume that they will no longer need Part B, as the associated services are already covered under something like Medicare Advantage or a Medicare Supplement Plan. But that is false. Dropping Part B is not an option, even with Medicare Advantage (which already has Part B in the bundle package).
If you have a Medicare Advantage Plan or a Medicare Supplement Plan and drop your Part B coverage, you will lose your coverage with Medicare Advantage and the Medicare Supplement.
Have More Questions?
If you have any questions about Medicare Part A or Part B, please contact us today by calling 800-805-6834.
