Medicare Basics
What is Medicare?
Medicare is a federal health insurance program designed for individuals aged 65 and older, as well as certain younger people with disabilities including those with end stage renal disease and amyotrophic lateral sclerosis. It started in 1965 under the Social Security Administration and is now administered by the Centers for Medicare and Medicaid Services. It consists of four different parts, covering various aspects of healthcare, including hospital stays, medical services, and prescription drugs. Medicare aims to provide essential health coverage, helping beneficiaries manage their medical expenses and access necessary healthcare services. Understanding the different parts of Medicare is crucial for making informed decisions about health coverage.
Four Parts of Medicare
Medicare Part A (Hospital Insurance): Part A covers inpatient hospital stays, skilled nursing facility care, hospice care, and some home health care services. Most people qualify for premium-free Part A if they or their spouse paid Medicare taxes while working.
Medicare Part B (Medical Insurance): Part B covers outpatient care, doctor visits, preventive services, and medical supplies. It helps pay for medically necessary services, including lab tests, surgeries, and doctor visits.
Medicare Part C (Medicare Advantage): Part C, also known as Medicare Advantage, is an alternative to Original Medicare. Offered by private insurance companies approved by Medicare, these plans often include additional benefits such as dental, vision, and prescription drug coverage.
Medicare Part D (Prescription Drug Coverage): Part D helps cover the cost of prescription drugs. These plans are offered by private insurance companies and can help reduce out-of-pocket costs for medications.
Who Can Enroll Into Medicare?
To be eligible for Medicare, you must be:
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Age 65 or older, or
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Under 65 with certain disabilities, or
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Any age with End-Stage Renal Disease (ESRD) or Amyotrophic Lateral Sclerosis (ALS).
Most people become eligible for Medicare at the age of 65. However, those under 65 who have been receiving Social Security Disability Insurance (SSDI) for at least 24 months, or who have specific conditions, may also qualify.
How to Enroll in Medicare
To enroll in Medicare, you can sign up online through the Social Security Administration's website or call them at 1-800-772-1213. You can enroll during your Initial Enrollment Period (IEP), which starts three months before you turn 65 and ends three months after your birthday month. If you happened to miss your IEP, you can enroll during the General Enrollment Period (GEP) which is from January 1 to March 31 each year, but you could face late enrollment penalties for missing your Initial Election Period.