Introduction to Medicare?

Medicare is the federal government program that provides health care coverage (health insurance) if you are 65+, under 65 and receiving Social Security Disability Insurance (SSDI) for a certain amount of time, or under 65 and with End-Stage Renal Disease (ESRD). The Centers for Medicare & Medicaid Services (CMS) is the federal agency that runs Medicare. The program is funded in part by Social Security and Medicare taxes you pay on your income, in part through premiums that people with Medicare pay, and in part by the federal budget.

What's The Difference Between Medicare And Medicaid?

Both are federal health insurance plans designed to give affordable or no-cost health insurance to qualifying individuals who are unable to pay a premium for private insurance plans. The main difference is that traditionally Medicare covers benefits for those over 65, while Medicaid is a free or low-cost insurance plan designed to provide basic coverage and benefits for low-income people.

Medicare Eligibility

Although the Medicare program primarily provides coverage for seniors, there are a few other extenuating situations that would allow somebody younger to be eligible for Medicare services. These include:

• Younger individuals who have disabilities or a serious health condition.
• Those who have already been given their social security benefits.
• Individuals who benefit from the Railroad Retirement Board's disability program.
• Patients who are on kidney dialysis or who need a kidney transplant.

What Does Medicare Cover?

Medicare has 5 main healthcare plans for seniors that are 65 or older as well as people with disabilities and several chronic health conditions, in a nutshell:

• Medicare Part A covers basic hospitalization.
• Medicare part B provides coverage for doctor visits, diagnostic tests and their likes.
• Medicare Part C (also called Medicare Advantage) combines both Medicare Part A and Medicare Part B coverage with additional benefits.
• Medicare Part D covers prescription drugs.
• Medicare supplement plans such as Medigap are private coverages and it covers out-of-pocket expenses such as co-pays, co-insurance, and deductibles.