Medicare Terms – O

Observation (Hospital)

Observation services are hospital outpatient services you get while your doctor decides whether to admit you as an inpatient or discharge you. You can get observation services in the emergency department or another area of the hospital.

Open Enrollment Period

From October 15 – December 7 each year, you can join, switch or drop a plan. Your coverage will begin on January 1 (as long as the plan gets your request by December 7).

Medicare Advantage and Medicare Prescription Drug Plans policyholders only. Medicare Supplement policyholders may switch year round, but may have to answer health questions. Additional special and state enrollment periods may apply.

Original Medicare

Original Medicare is a fee-for-service health plan that has two parts: Part A (Hospital Insurance) and Part B (Medical Insurance). After you pay a deductible, Medicare pays its share of the Medicare-approved amount, and you pay your share (coinsurance and deductibles).

Out-of-Pocket Costs

Health or prescription drug costs that you must pay on your own because they aren’t covered by Medicare or other insurance.