What is Medicare

Medicare is a federal government funded health insurance program setup for people who are over the age of 64.5 and also those under the age of 64.5 who have certain disabilities. People who are over 64.5 can qualify for Medicare if they have been a US citizen or permanent resident for more than 5 years AND have paid Medicare taxes for at least 10 years.

If you haven’t paid for Medicare taxes for at least 10 years, you can still qualify for Medicare, however you may have to pay a set amount for Medicare Part A.

If you are under 64.5 you may qualify for Medicare if you suffer from End-Stage Renal disease or End-Stage Kidney disease, Amyotrophic Lateral Sclerosis (ALS) or Lou Gehrig’s disease, or if you are permanently disabled and have been receiving Social Security Disability for the past two years.

Types of Medicare Plans

Medicare Part A

Medicare Part A is Hospital Insurance. It covers things such as inpatient hospital care, overnight stays in hospitals or skilled nursing facilities, home healthcare visits, and medical supplies and drugs used during any of these stays. It can be free if you paid for Medicare taxes for at least 10 years.

Medicare Part B

Medicare Part B is Medical Insurance. It covers things such as services from doctors, outpatient care, home healthcare, medical preventive services, and medical equipment. Medicare Part B is usually not free and the majority have to pay for this coverage. The average monthly premium for Part B is around $150 however this may be higher based on your level of income.

Medicare Part C better known as Medicare Advantage

Medicare Advantage is a health insurance plan that’s backed by private health insurance companies which replaces Medicare Part A and Part B and also gives additional benefits. This will usually include coverage on prescription drugs, hearing, vision and dental services. The additional benefits may vary depending on the private health insurance plan you select.

Medicare Part D

Medicare Part D is prescription drug coverage and is backed by private health insurance companies. It covers the cost of prescription drugs for both generic and brand name drugs however this may vary depending on the plan you purchase. The cost of Medicare Part D can vary depending on your plan.

Medicare Supplemental / Medigap

Medicare Supplemental plans are extra health insurance plans bought from private health insurance companies. These plans are labeled as Part F, G, K, L, M and N, and each plan has different coverage benefits. The most popular Medicare Supplemental plan is Part F which covers both Medicare deductibles and all copays/coinsurance so that you don’t pay anything Out-Of-Pocket.