Medicare Basics

What is Medicare?

Medicare is the nation’s largest health insurance program, covering 40 million Americans. It was designed to provide high quality health care to people 65 and over, as well as to others with disabilities.

What are the parts of Medicare?

Medicare has four main parts – A, B, C, and D. They cover certain medical services and prescription medications, as well as supplies in hospitals, doctors’ offices and other health care facilities.

Medicare Part A is hospital insurance. It is provided by the government, usually with no monthly premium.

Medicare Part B is optional medical insurance for which you pay an additional monthly premium that usually comes out of your Social Security benefits. It covers doctor, outpatient hospital, diagnostic tests, ambulance, durable medical equipment, home health care and other services that are not covered under Medicare Part A.

Medicare Part C is also known as Medicare Advantage. When you select Part C instead of Part A and Part B, you could get the same or greater benefits – and some extras like wellness, vision, hearing and dental care from a Medicare Advantage plan. Medicare Advantage (MA) plans "take the place of" your Original Medicare coverage. In other words, when you join an MA plan, you become a member of that plan and no longer need to use your red, white and blue Original Medicare card. You still must pay your Medicare Part B premium; however, your MA plan becomes your primary insurer.

Medicare Part D is outpatient prescription drug coverage. Everyone with Medicare is eligible to join a Medicare Part D prescription drug plan.