What is Medicare?
Medicare is a federal health insurance program for individuals age 65 and over or under 65 with certain disabilities. There are four parts to Medicare — Parts A, B, C and D.
Part A helps to pay for hospital, skilled nursing care, home healthcare and hospice care. In most cases, if you had a Medicare deduction from your paycheck while you were working, you will not have a Medicare Part A premium. When you&nrsquo;re first eligible for Medicare, you have a seven‐month initial enrollment period to sign up for Part A and/or Part B.
Part B helps to pay for physician services, outpatient services, durable medical equipment and other medical services. When you’re first eligible for Medicare, you have a seven‐month initial enrollment period to sign up for Part A and/or Part B. You are required to have both Part A and Part B in order to purchase either a Medicare Supplement or a Medicare Advantage plan.
Part C refers to Medicare Advantage plans. These plans incorporate your Part A, Part B and often Part D — Prescription Drug coverage — into one plan. Medicare pays a private insurance company to provide your healthcare coverage with a Medicare Advantage plan. These plans must, at minimum, provide the same level of coverage as Original Medicare and may include a monthly plan premium. Medicare Advantage plans often include additional benefits not offered by Original Medicare.
Part D refers to Medicare Prescription Drug coverage. People with Original Medicare and a Medicare Supplement will need to purchase a Medicare Part D Prescription plan separately. For people joining a Medicare Advantage plan, a Medicare Prescription plan is often included with the Medicare Advantage coverage. You should note that if you decide to enroll later for Part D Prescription Drug coverage, a penalty may be assessed by the Federal Government.