All About Medicare

What are the parts of Medicare?

The different parts of Medicare help cover specific services:

• Medicare Part A (Hospital Insurance) à Part A covers inpatient hospital stays, care in a skilled nursing facility, hospice care, and some home health care.
• Medicare Part B (Medical Insurance) à Part B covers certain doctor’s services, outpatient care, medical supplies, and preventive services.
• Medicare Part D (prescription drug coverage) à Part D helps cover the cost of prescription drugs (including many recommended shots or vaccines)

What changes are coming in 2024?

For the first time, thanks to the Inflation Reduction Act, Medicare will be able to negotiate the prices of prescription drugs. The names of the first 10 drugs covered under Medicare Part D that were selected for negotiation was recently announced. The negotiations with participating drug companies will occur in 2023 and 2024, and any negotiated prices will become effective beginning in 2026.

               The Inflation Reduction Act will make another key change to improve drug affordability for seniors and people with disabilities. Starting in 2024, there will be a cap on the annual out-of-pocket costs in Medicare part D. In 2025, this annual cap will be reduced to $2,000 then will be indexed annually thereafter.

You May Want More Coverage

Original Medicare has deductibles, copayments and coinsurance that can quickly add up. That’s why many people enroll in private health plans to help cover the costs that Medicare does not.

AAA Minneapolis offers Medicare 101 Educational Webinars and Seminars

Learn about the different parts of Medicare and why each is important. Attend a AAA Minneapolis educational class, which are held both online and in person. Each year you can make changes to your Medicare Advantage plan or Medicare drug plan for the following year. The annual enrollment period (AEP) is Oct. 15 through Dec. 7—any changes you make to your Medicare Advantage plan or Medicare drug plan would be effective Jan. 1 of the following year (2024).

To register, go to minneapolis.aaa.com/insurance/events or contact our Health Insurance Planning Specialist, Guy Milbert, at 952-927-2752 or gmilbert@aaaminneapolis.com.

We do not offer every plan available in your area. Currently, we represent eight organizations which offer 42 products in your area. Please contact Medicare.gov, 1-800-MEDICARE or your local State Health Insurance Program (SHIP) to get information on all your options.