Medicare

Medicare is a federal health insurance program in the U.S. primarily for people 65 or older, but also for younger people with certain disabilities or End-Stage Renal Disease (ESRD). It has several parts: Part A (hospital insurance), Part B (medical insurance), Part C (Medicare Advantage plans), and Part D (prescription drug coverage). Original Medicare (Parts A and B) is managed by the government, while Parts C and D are offered by private companies approved by Medicare.

Part A (Hospital Insurance)

Covers inpatient hospital care, skilled nursing facility care (not long-term care), hospice care, and some home health care. Most people don't pay a monthly premium for Part A.

Part B (Medical Insurance)

Covers doctors' services, outpatient care, medical supplies, and preventive services. Most people pay a monthly premium for Part B.

Part C (Medicare Advantage)

An alternative to Original Medicare offered by private companies. These "bundled" plans typically include Part A, Part B, and often Part D coverage. They can offer extra benefits not covered by Original Medicare, like vision, hearing, and dental services.

Part D (Prescription Drug Coverage)

Helps pay for prescription drugs and is offered through private insurance plans approved by Medicare. Most people pay a monthly premium for Part D.

How it Works

Medicare Advantage vs. Original Medicare:

You can choose either Original Medicare (Parts A and B) or a Medicare Advantage plan (Part C). Medicare Advantage plans may have different costs and offer additional benefits.

Medicare Supplement Insurance (Medigap):

You can also buy a Medigap policy from a private company to help pay for out-of-pocket costs that Medicare doesn't cover, such as copayments, coinsurance, and deductibles.

Original Medicare:

You pay for services as you receive them, and you can use any doctor or hospital in the U.S. that accepts Medicare.