Medicare Part B Definition | OnlineHealthIns.com Glossary

Medicare Part B

Also known as: Medical Insurance

The part of Medicare that covers outpatient care, doctor visits, preventive services, and medical equipment, and typically requires a monthly premium.

Medicare Part B is often called "medical insurance." It covers outpatient services: doctor visits, preventive screenings, lab tests, durable medical equipment, and outpatient procedures. Unlike Part A, most people pay a monthly premium for Part B, and that premium can be higher for people with higher reported income.

Covers doctor visits, both primary care and specialist, in an outpatient setting.
Covers many preventive services, like annual wellness visits and screenings, often at no additional cost.
Covers durable medical equipment such as wheelchairs, walkers, and oxygen equipment.

Part B has an annual deductible, and after that's met, it typically pays 80% of the approved cost for covered services, leaving the beneficiary responsible for the remaining 20% coinsurance, unless they have supplemental coverage like a Medigap policy or Medicare Advantage plan.

A common point of confusion is delaying Part B enrollment without qualifying for an exception. Signing up late, without qualifying employer coverage, can trigger a permanent late enrollment penalty added to the monthly premium.

Example

A Medicare beneficiary sees a cardiologist for an outpatient consultation, and Part B covers 80% of the approved cost after the annual Part B deductible has been met.

Good to Know

Delaying Part B enrollment without qualifying employer coverage can result in a lifelong late enrollment penalty on the monthly premium.

Related Terms

Medicare Part A — The part of Medicare that covers inpatient hospital stays, skilled nursing facility care, hospice, and some home health care.

Medicare Part C (Medicare Advantage) — An alternative way to get Medicare benefits through a private insurance company, often bundling Part A, Part B, and usually Part D, plus extra benefits.

Medicare Part D — The part of Medicare that covers outpatient prescription drugs through private plans that contract with Medicare.