The Ins and Outs of Medicare

Medicare is a three-part, federally-funded program that offers health insurance to the elderly. If you are age 65 or older, or under 65 with certain disabilities, or have end-stage renal disease, Medicare is a health insurance program that can help you afford your health care expenses. The coverage is made up of the following parts: Part A – Hospital Insurance, Part B – Medical Insurance and Part D - Prescription Drug Coverage.

Hospital Insurance helps cover your costs should you need to stay in a hospital for care. This includes critical access hospitals, and skilled nursing facilities (not custodial or long-term care). It also helps cover hospice care and some home health care. Beneficiaries must meet certain conditions to get these benefits. Most people don't pay a premium for Part A because they or a spouse already paid for it through their payroll taxes while working.

Medical Insurance covers some medical services that Part A doesn't cover, such as the services of physical and occupational therapists, and some home-related health care. Part B helps pay for these covered services and supplies when they are medically necessary. Most pay a monthly premium for Part B.

Prescription Coverage offers lower cost prescriptions for patients. Individuals choose the drug plan and pay a monthly premium. However, if a beneficiary decides not to enroll in a drug plan when they are first eligible, they may pay a penalty if they choose to join later.

Medicare only covers services if you're sick or injured. It does not cover most prescription drugs, regular check-ups, dental care or dentures, cosmetic surgery, routine foot care, hearing aids, or glasses.