Medicare Part B: Outpatient Medical Insurance

Part B handles the medical treatments and preventative care that take place outside of a hospital stay.

What It Covers

• Medical Services: Covers doctor’s visits, outpatient procedures, durable medical equipment, outpatient care, blood purchases, mammograms, cardiac rehabilitation, and cancer treatments.
• Eligibility Rules: Matches Part A requirements (age 65+, 24 months of disability, or ESRD status).

What You Should Know

• The Coverage Penalty: You are required to enroll in Part B if you do not have "creditable coverage" from another active source (like your current employer or a spouse’s current employer). If you do not sign up when first eligible and lack creditable coverage, you may face lifelong late-enrollment penalties.
• Out-of-Pocket Expenses: Part B requires a monthly premium (which can be automatically deducted from your Social Security checks), an annual deductible, and a standard 20% coinsurance for Medicare-approved services.

Important Warning: Original Medicare Part B has no annual cap on your 20% out-of-pocket expenses. This is why supplemental coverage is so critical.