Medicare is health insurance for:
- People 65 or older
- Certain people under 65 with disabilities
- People of any age with End-Stage Renal Disease (ESRD) (permanent kidney failure requiring dialysis or a kidney transplant)
What are the different parts of Medicare?
Original Medicare is a fee-for-service health plan that has two parts: Part A (Hospital Insurance) and Part B (Medical Insurance).
Medicare Part A (Hospital Insurance) helps cover:
• Inpatient care in a hospital
• Skilled nursing facility care
• Hospice care
• Home health care
You usually don’t pay a monthly premium for Part A coverage if you or your spouse paid Medicare taxes while working for a certain amount of time. This is sometimes called premium-free Part A. If you aren’t eligible for premium-free Part A, you may be able to buy Part A.
Medicare Part B (Medical Insurance) helps cover:
• Services from doctors and other health care providers
• Outpatient care
• Home health care
• Durable medical equipment (DME)
• Many preventive services
Most people pay the standard monthly Part B premium.
Note: Original Medicare pays for much, but not all of the cost for health care services and supplies. Medicare Supplement Insurance policies, sold by private companies, can help pay some of the remaining health care costs, like copayments, coinsurance, and deductibles. Medicare Supplement Insurance policies are also called Medigap policies.
What are the different parts of Medicare? (continued)
Medicare Part C (Medicare Advantage):
- Includes all benefits and services covered under Part A and Part B
- Usually includes Medicare prescription drug coverage (Part D) as part of the plan
- Run by Medicare-approved private insurance companies that follow rules set by Medicare
- Plans have a yearly limit on your out-of-pocket costs for medical services
- May include extra benefits and services that aren’t covered by Original Medicare, sometimes for an extra cost
Medicare Part D (Medicare prescription drug coverage):
- Helps cover the cost of prescription drugs
- Run by Medicare-approved drug plans that follow rules set by Medicare
- May help lower your prescription drug costs and help protect against higher costs in the future