Medicare is a federal health insurance program in the US and many other countries that offer health insurance programs to the following people:
- Elders who are 65 years and above
- Young people with disabilities
- People with permanent kidney failure who require transplants or dialysis
There are different parts of Medicare insurance that cover specific services, including:
- Medicare Part A – Hospital Insurance: Covers inpatient hospital stays, hospital services, skilled nursing facilities, and certain healthcare services. Some individuals qualify for premium-free Part A, while others may purchase it for $506 per month in 2023.
- Medicare Part B – Medical Insurance: Covers outpatient hospital and doctor’s services, including medical supplies and preventive services. The standard premium for Part B in 2023 is $164.90 per month.
- Medicare Part D – Cost Assistance: Medicare Part D helps reduce certain out-of-pocket expenses for covered healthcare services..
How Does Medicare Work?
Medicare offers different options for hospital and healthcare coverage. Once a person enrolls, they can choose how to receive their coverage through one of two main options:
Original Medicare
- Includes Hospital Insurance (Part A) and Medical Insurance (Part B)
- Individuals pay for services as they use them, with an annual deductible and a 20% coinsurance responsibility.
- People can opt for additional cost assistance through Medicare-approved plans for broader coverage.
This includes Hospital Insurance (Part A) and Medical Insurance (Part B). People generally pay for the services as they use them, with an annual deductible and a 20% coinsurance responsibility. Additional cost assistance is available through Medicare-approved programs.
Medicare Advantage
- A bundled plan from private providers, including Part A, Part B, and sometimes Part D.
- May offer extra benefits not included in Original Medicare, such as dental, vision, and hearing services.
- These plans operate on annual contracts and follow specific coverage guidelines.
Medicare Part D provides financial support for certain eligible healthcare services. One prerequisite for this plan is to enroll in a Medicare-approved program that offers additional cost-saving options. Although costs and coverage details vary, these plans typically categorize services into different cost levels based on Medicare guidelines.