What is Medicare

What is Medicare?

Let us give you a brief overview about all of the parts of Medicare and the coverage it provides. For more details, you can also read the Centers for Medicare and Medicaid Services publication, Medicare & You 2011.

What is Medicare and Who is Eligible?

Medicare is the U.S. Federal Government Health Insurance Program for:

People 65 years of age and older
Some people with disabilities under age 65
People with End-Stage Renal Disease (permanent kidney failure requiring dialysis or a transplant)

Original Medicare covers many health care services and supplies, but there are many costs (“gaps”) it doesn’t cover. Medicare provides Part A & B coverage. You can buy a Medigap (Medicare Supplement Insurance) policy (sold by private insurance companies) to help fill the gaps in Part A & Part B coverage (like coinsurance, copayments & deductibles).

Medicare has four parts:

Medicare Part A (Hospital Insurance)

Helps cover inpatient care in hospitals
Helps cover skilled nursing facility, hospice, and home health care

Medicare Part B (Medical Insurance)

Helps cover doctors’ services, hospital outpatient care, and home health care
Helps cover many preventive services to help maintain your health and to keep certain illnesses from getting worse

Medicare Part C (Medical Insurance)

Medicare Advantage Plans (like an HMO or PPO) are health plans run by Medicare approved private insurance companies. Medicare Advantage Plans (also called “Part C”) include Part A, Part B, and usually include other coverage like Medicare prescription drug coverage (Part D), sometimes for an extra cost.

Medicare Part D (Medicare Prescription Drug Coverage)

A prescription drug option run by Medicare-approved private insurance companies
Helps cover the cost of prescription drugs
May help lower your prescription drug costs and help protect against higher costs in the future

Follow the links below for a detailed explanation of Medicare’s four parts:

Part A Part B Part C Part D

Find out about Medicare Supplement Insurance