What Is Medicare

What is Medicare Insurance?

MEDICARE is a federal health insurance program that offers coverage to two groups of eligible individuals:

• If you are at least 65 years old, you may qualify for Medicare based on age.
• People of ANY age may be eligible with Social Security disability or with ALS or End-Stage Renal Disease, which is permanent kidney failure requiring dialysis or a transplant.
  Medicare derives funding from various sources, including payroll taxes, individual premiums, and the federal budget.

Medicare is segmented into four parts …

Part A: Hospital Insurance

Medicare Part A provides coverage for inpatient care in hospitals, skilled nursing facility care, hospice care, and some home health care. Most beneficiaries wouldn’t pay a premium for Part A if they or their spouse paid at least forty-quarters of FICA taxes while working.

Part B: Medical Insurance

Medicare Part B includes coverage for doctors’ services, outpatient care, medical supplies, and preventive services. Part B usually requires a monthly premium, which varies according to income level.

Medicare Part A & Part B are what is known as Original Medicare. For additional coverage, you may choose to enroll in a Medigap Supplement provided by a private insurance company and/or other parts of Medicare.

Part C: Medicare Advantage Plans

Medicare Part C, commonly known as Medicare Advantage, is an alternate way to receive your Medicare benefits. These plans are offered by private companies approved by Medicare. They combine Part A, Part B, and sometimes Part D coverage. And they often include extras, such as routine dental, vision, hearing, or fitness benefits.

Part D: Prescription Drug Coverage

Medicare Part D plans are for prescription drug coverage. These plans are offered by Medicare-approved private insurers and vary in cost and drugs covered. Standalone Part D plans have a monthly premium. Advantage Plans may offer Part D coverage bundled.

Final Thoughts

Like any insurance program, Medicare involves complexities regarding its coverage options and costs. I’m here to help you make informed choices that are aligned with your healthcare needs and financial circumstances.