What is Medicare and how does it work?

Transitioning to Medicare can leave you with a lot of questions. How does Medicare work? What does Medicare cover? Between the deadlines to remember, all of its different parts, and a laundry list of confusing terms, it can feel challenging to make the right decisions for your healthcare needs. Understanding Medicare benefits can help you feel confident in the choices you make. So let’s start with the basics:

Table of Contents

What is Medicare?

Medicare is a national health insurance program that provides coverage for:

  • People 65 or older
  • People younger than 65 who have certain disabilities,
  • People of any age who have permanent kidney failure

 

At age 65, many Americans choose to retire as they finally become eligible for Social Security and Medicare benefits, giving them the freedom to leave their employer-sponsored health plan.

Medicare has been designed to work a lot like health insurance policies you may have held in the past. To put it simply, Medicare helps pay for a portion of your healthcare cost for things like doctor’s office visits and hospital stays.

What does Medicare cover?

Medicare coverage is divided into four parts. The different parts of Medicare correspond with the coverage they provide and can be put together to build a plan based on your healthcare needs.

Learn about the basics of Medicare Parts A, B, C & D to start exploring your options.

Part A

Hospital Insurance

Part A is hospital coverage.

It covers the care you receive while an inpatient in a hospital or skilled nursing facility.

Part C

Medicare Advantage

Part C is also known as Medicare Advantage. Part C combines all of the benefits of original Medicare into one policy. Part C may also offer additional benefits like prescription drug coverage.

Part B

Medical Coverage

Part B is medical coverage. It covers doctor visits and outpatient care.

Part D

Prescription Drug Coverage

Part D is prescription drug coverage. While many Medicare Advantage policies offer prescription drug coverage, Medicare Part D can be purchased as a standalone benefit.

Part A

Hospital Insurance

Part A is hospital coverage.

It covers the care you receive while an inpatient in a hospital or skilled nursing facility.

Part B

Medical Coverage

Part B is medical coverage. It covers doctor visits and outpatient care.

Part C

Medicare Advantage

Part C is also known as Medicare Advantage. Part C combines all of the benefits of original Medicare into one policy. Part C may also offer additional benefits like prescription drug coverage.

Part D

Prescription Drug Coverage

Part D is prescription drug coverage. While many Medicare Advantage policies offer prescription drug coverage, Medicare Part D can be purchased as a standalone benefit.

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Need Help?

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