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Describe the four parts to Medicare and why they are important to healthcare organizations.

Describe the four parts to Medicare and why they are important to healthcare organizations.

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Medicare, the national health insurance program for US citizens, has four parts. These are part A, part B, part C, and part D. Each has its own role in patient care and is beneficial to both patients and healthcare organizations. Part A gives inpatient/hospital coverage. Part B gives outpatient/medical coverage. Part C gives another path to get Medicare benefits. Part D gives prescription drug coverage. Part D has the option to work with other insurances.

All the four parts are important to healthcare organizations as each one of them has a significant role to play as far as healthcare organizations’ profitability is considered in the long run. The revenue cycle in healthcare organizations includes coding healthcare services and insurance billing. When each patient has got eligible insurance, it helps in the cost determination of different treatments. Faster and accurate insurance claims transmission lets greater flexibility in patient care arrangements. Medicare part A and part B benefits are covered by the Medicare Advantage Plan offered by private insurance companies that make a contract with Medicare. Most of these plans include prescription medication coverage. Since inpatient and outpatient coverage is provided by these companies, healthcare organizations can deal with patient admissions etc., in a relaxed and effortless manner. Coverage makes the treatment affordable to patients, which in turn leads the patients to opt for the otherwise unaffordable treatments. Thus increasing the profitability of the healthcare organizations.

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