MEDICARE BASICS
How Does Medicare Work?
Once you know the basics, Medicare becomes easier to understand. Learn about the fundamentals to get a better understanding of what you can expect from your Medicare coverage with Blue Cross and Blue Shield of Montana.
Medicare is a national health insurance program administered by the federal government. It is not part of the health insurance marketplace.
Most Americans join Medicare at age 65. Younger people can also join if they have end-stage renal disease (ESRD) and need dialysis or a kidney transplant. It has four parts.
The Four Parts of Medicare
Medicare is made up of four parts. Each Medicare part (designated by a letter) covers specific types of services and costs. Note that BCBSMT does not include Part D, which covers prescription drugs.
Part A is insurance for hospital expenses
Part A helps pay for:
- Inpatient hospital care
- Skilled nursing facility care after a hospital stay
- Some home health care and hospice services
Learn more about Medicare Part A
Part B is insurance for medical services
Part B helps pay for:
- Doctor’s office visits and services
- Most outpatient care
- Home health care
- Durable medical equipment
- Many preventive services
Part C covers all the benefits of Part A and Part B with added benefits
Part C is also called Medicare Advantage. Part C is offered through private insurers approved by Medicare, such as Blue Cross and Blue Shield of Montana.
Part C offers additional benefits. Depending on the insurance plan, Part C may also include:
- Dental, hearing and/or vision services
- Health, wellness and fitness programs
- Provider networks to help manage costs
- A preloaded flexible spending card to help reduce your out-of-pocket expenses for covered dental, vision and hearing services
Learn more about Medicare Part C
Part D is prescription drug coverage
If you’re looking for an insurance plan that helps you cover some out-of-pocket expenses for prescription drugs, like copays or coinsurance, consider a Part D plan. Part D is offered by private companies contracted by Medicare.
Learn more about Medicare Part D
Medicare Supplement complements Original Medicare
Medicare Supplement Insurance Plans add extra coverage to your Medicare plan. They help cover out-of-pocket costs like copays, coinsurance and deductibles. They are identified by the letters A, B, C, D, F, G, K, L, M and N. Each insurance plan covers different costs that Original Medicare doesn’t cover.
Tools and Resources
Helpful Tools and Resources
- Find the Right Plan
- Stay With Blue
- Get Help From an Agent
- Free Medicare Booklet
