Here is a simple explanation I give to my clients regarding their coverage under Medicare Part A, Part B and having a Medicare Supplement Plan G.
Medicare Part A is the hospital benefit. This does not cost you extra. A portion of your tax dollars paid for this. Medicare Part B is the medical benefit. This is any service you get outside of a hospital setting. The monthly cost for most people as of 2020 is 144.60.
With Medicare Part A, Part B, and a Medicare Supplement Plan G the most you will pay out of your pocket for any Medicare-approved expenses in a calendar year is the Medicare Part B deductible. The Medicare Part B deductible is an annual deductible that resets January 1st of each year. The deductible amount for 2020 is $198. This deductible goes up a little each year.
It really is that simple. One thing to keep in mind though, is that this applies to Medicare-approved expenses. These are considered reasonable and customary services. Physicians are responsible to let you know if a service will not be covered by Medicare. Dental, vision, and hearing are also services that are generally not covered by Medicare. Medicare Part D prescription drug plans are separate plans and are not included in a Medicare Supplement. Long term stays in nursing homes are not covered by Medicare.
I have found that keeping it simple is an effective way to explain the benefits my clients are getting. It’s easier to explain what isn’t covered than what is covered. People want to know the bottom line. They want to know what they have to pay out of pocket. It’s much easier to remember what is covered by looking at it this way instead of breaking it down into the separate parts of Medicare and going through all of the detailed co-payments and deductibles.
Thanks for reading.