Before and after enrolling in Medicare, you will come across various terms that you may not be completely familiar with. But that’s okay! At Eldridge Agency, we understand that there can be a lot to take in when it comes to Medicare. That’s why in this blog, we’ll explain the top three terms you should know as a Medicare beneficiary.

Premiums

Medicare premiums are monthly payments beneficiaries must make in order to stay enrolled in their Medicare plan. Medicare premiums can vary based on plan, income, location, etc. There are some Medicare plans with $0 premiums. For example, Medicare Part A is premium-free for many beneficiaries, and there are some Medicare Advantage plans that also have little to no premiums.

Overall, since these premiums will vary across each plan, it’s important to know what exactly you will have to pay. At Eldridge Agency, we can walk you through the cost of each plan and what factors may affect what you will pay.

Benefit Period

A benefit period is defined by Medicare as your stay as an inpatient in a hospital. This benefit period will start as soon as you are admitted and will end as soon as you have been out of the hospital for at least 60 days straight. If after these 60 days have ended and you are admitted again as an inpatient, a new benefit period will start.

These benefit periods are tied in with your Medicare Part A plan, since Part A is what provides coverage for your inpatient care. But, just like other health insurance, you must pay a deductible before your coverage can start. With Part A, you will have a deductible to pay for each benefit period. As of 2021, the Part A deductible for each benefit period is $1,484.

There is no limit to the number of benefit periods you can receive.

Formulary

A formulary refers to the list of prescription drugs covered by a Medicare Part D prescription drug plan, or a Medicare Advantage plan that includes prescription drug coverage. All prescription drug plans are required to provide coverage for at least two drugs in each drug category, but the two that are covered will vary by each plan.

These plans are also required to include drugs that fall in the categories of immunosuppressants, antidepressants, antipsychotics, anticancer, anticonvulsants, and HIV/AIDS drugs in their formularies.

For all your Medicare needs, contact us today at (775) 328-1197!