Medicare 101: A Simple Guide for Beginners

What is Medicare?

Medicare is a federal health insurance program. It helps people aged 65 and older. It also helps some younger people with disabilities. Medicare covers many healthcare services.

Medicare has different parts. Each part covers specific services. Understanding these parts can help you choose the right plan.

The Parts of Medicare

Part A: Hospital Insurance

Part A covers hospital stays. It also covers skilled nursing facilities, hospice, and some home health care. Most people do not pay a premium for Part A if they or their spouse paid Medicare taxes while working.

Part B: Medical Insurance

Part B covers doctor visits and outpatient care. It also covers some preventive services. Most people pay a monthly premium for Part B. It helps cover services that Part A does not.

Part C: Medicare Advantage

Part C is also known as Medicare Advantage. These plans are offered by private companies. They include Part A and Part B coverage. Many also offer additional benefits like vision, dental, and hearing.

Part D: Prescription Drug Coverage

Part D helps cover the cost of prescription drugs. These plans are also offered by private companies. You can add Part D to Original Medicare or a Medicare Advantage plan.

How to Enroll in Medicare

Most people are automatically enrolled in Part A and Part B when they turn 65. If you are not automatically enrolled, you can sign up during your Initial Enrollment Period. This period starts three months before your 65th birthday and ends three months after your birthday month.

If you miss your Initial Enrollment Period, you can sign up during the General Enrollment Period. This period runs from January 1 to March 31 each year. You may have to pay a late enrollment penalty if you sign up late.

Choosing the Right Plan

Choosing the right Medicare plan depends on your needs. Consider your health, budget, and preferences. Compare different plans and their benefits. You can use the Medicare Plan Finder tool to help you.