Medicare in a Nutshell

Medicare is a U.S. federal health insurance program, primarily for people 65 and older. It is broken into different "parts" to cover various services: Part A (Hospital Insurance), Part B (Medical Insurance), Part C (Medicare Advantage), and Part D (Prescription Drug Coverage).    

You can get coverage through Original Medicare (Parts A and B, plus optional supplemental plans) or a Medicare Advantage plan. Original Medicare (Parts A & B)

• Part A (Hospital Insurance): Covers inpatient hospital stays, skilled nursing facility care, hospice, and some home health care. Most people get Part A premium-free if they or a spouse paid Medicare taxes for at least 10 years. 
• Part B (Medical Insurance): Covers doctors' services, outpatient care, medical supplies, and preventive services. You typically pay a monthly premium for Part B, and after meeting an annual deductible, you usually pay 20% of the Medicare-approved amount for most services. 

Other coverage options

• Medicare Advantage (Part C): A private alternative to Original Medicare that bundles Part A, Part B, and usually prescription drug coverage (Part D) into one plan. Many plans include extra benefits like vision, dental, and hearing. Plans often require you to use doctors and hospitals within their network, except for emergencies. 
• Medicare Part D: A private plan that helps cover the cost of prescription drugs. You will pay a monthly premium and a copay for prescriptions, which varies by plan and the drug's tier. 
• Medigap (Medicare Supplement Insurance): If you have Original Medicare, you can buy a Medigap policy from a private company to help with some of the out-of-pocket costs like deductibles and coinsurance. 

How to get and pay for coverage

• Automatic enrollment: If you are already receiving Social Security benefits when you turn 65, you are typically automatically enrolled in Parts A and B. 
• Enrollment: If you are not receiving Social Security, you must actively enroll during your initial enrollment period. 
• Costs: You'll have a deductible and coinsurance for services. Costs for Part B can vary based on your income, and some people may qualify for assistance programs to help with costs. 
• Enrollment penalty: If you don't sign up for Part B when you're first eligible, you may have to pay a penalty when you do enroll later.