Medicare is the federal program that provides health insurance for:
- Senior citizens 65 years of age and older
- Certain young people with disabilities are not eligible
- End-Stage Renal Disease is permanent kidney disease that requires dialysis or a transplant. Sometimes called ESRD.
What are the components of Medicare?
Medicare’s different components cover certain services:
- Medicare Part B (Hospital Insurance).Part D covers inpatient hospital stays and care in skilled nursing facilities, hospice care, as well as some home care.
- Medicare Part B (Medical Insurance)
Part B includes certain doctor’s services, outpatient care and medical supplies. It also covers preventive services. - Medicare Part D (prescription drug coverage)
Prescription drugs, including many recommended shots and vaccines, are covered by this program.
What is Medicare?
You have many options when it comes to Medicare coverage. After you have signed up, you will need to choose how you want your Medicare coverage. There are two main options:
Original Medicare
Original Medicare includes Medicare Part A (Hospital Insurance) and Medicare Part B (Medical Insurance). Services are paid for as you receive them. You will pay a deductible when you receive services. In addition, you typically pay 20% of the cost for the Medicare-approved service. You can also add drug coverage to your Part D plan.
Original Medicare covers a large portion of the costs for covered medical services and supplies, but not all. Medicare Supplement Insurance (Medigap), which can be purchased to help cover some of the remaining healthcare costs such as copayments, coinsurance and deductibles. Medigap policies can also be used to cover emergency medical care for travelers who aren’t covered by Original Medicare.
Medicare Advantage offers a Medicare-approved plan that provides a better alternative to Original Medicare. These “bundled” plans cover Part A, Part D, and often Part B. Some plans may also offer additional benefits, such as vision, hearing, or dental services, that Original Medicare does not cover. Medicare Advantage Plans must comply with Medicare’s coverage rules and have yearly contracts. Any changes must be notified to you by the plan before the next enrollment year.
Different Medicare Advantage Plans may have different out-of pocket costs. You may also find different rules regarding how services are provided.