What is Medicare

Medicare is federal health insurance managed by the Centers for Medicare & Medicaid Services. It is for people 65 or older, some younger people with disabilities, and people with End-Stage Renal Disease. It is defined in four parts: Hospitalization (Part A), Medical Services (Part B), Medicare Advantage (Part C), and Prescription Drug Plans (Part D).

Original Medicare

When most people turn 65, they’re eligible for Original Medicare, which is a fee-for-service, federally managed health plan that provides eligible individuals with coverage for and access to doctors, hospitals and other healthcare providers that accept Medicare. (Note: fee-for-service is a form of health insurance whereby health care providers are reimbursed based upon a fee for each service they provide to the insured individual.)

Hospital and medical insurance

Original Medicare includes two parts: Part A (Hospital Insurance), which covers services like skilled nursing facility or inpatient hospital care, and Part B (Medical Insurance), which helps pay for services for doctors/other healthcare providers, outpatient care, or durable medical equipment. While most people are automatically enrolled in Medicare Part A, each person must sign-up for Part B.

Eligibility

You become eligible for Medicare when you turn 65. You have a window to sign up for Medicare. It begins 3 months before you turn 65 and ends 3 months after you turn 65. Younger individuals who have a disability or End-Stage Renal Disease may also be eligible.