Overview of Medicare
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Overview of Medicare
Medicare is the nation’s largest health insurance program, providing high-quality health care to people 65 and over (as well as limited other groups of disabled people). Medicare is administered by the Centers for Medicare and Medicaid Services (CMS), part of the Department of Health and Human Services (HHS).
Things To Know
- Medicare is the nation’s largest health insurance program.
- Medicare Part C offers health plan options run by Medicare-approved private insurance companies.
The different parts of Medicare help cover specific services:
Part A
Medicare Part A (hospital insurance) helps cover inpatient care in hospitals and skilled nursing facilities, hospice, and home health care. Most people pay no premium for Part A coverage. There is a significant deductible, as well as a co-payment for hospital stays of over 60 days.
Part B
Medicare Part B (medical insurance) helps cover the services of physicians and other healthcare providers, outpatient care, durable medical equipment, and home health care. Part B also helps cover some preventive services to maintain good health or to keep certain illnesses from getting worse. There is a premium for Part B coverage. Once a modest deductible has been met, Part B typically covers 80% of approved services, while the remaining 20% is paid by the patient.
Traditional Part A and Part B coverage apply to a large majority of Medicare enrollees. The government directly pays the healthcare provider you select, provided he or she accepts Medicare patients.
Part C
Medicare Part C (also known as Medicare Advantage) is an alternative means of delivering the care and services provided by Parts A and B. Medicare Advantage offers health plan options run by Medicare-approved private insurance companies; i.e., the federal government pays for private health coverage.
Most Medicare Advantage Plans also include the prescription drug coverage offered by traditional Medicare Part D, and some Medicare Advantage Plans may include extra benefits for an extra cost.
Part D
Medicare Part D (prescription drug coverage) helps cover the cost of outpatient prescription drugs solely through private insurance plans. These may be standalone prescription drug plans or a part of a Medicare Advantage plan that offers a prescription drug benefit.