Medicare is a federal health insurance program in the United States, primarily designed to provide health coverage for people aged 65 and older, as well as certain younger individuals with disabilities and those with End-Stage Renal Disease (ESRD). It was signed into law by President Lyndon B. Johnson in 1965, and it has since become a vital component of the American healthcare system.
Medicare is divided into four parts, each offering different types of coverage:
1. Medicare Part A: Hospital Insurance - This part covers inpatient hospital stays, care in a skilled nursing facility, hospice care, and some home health care. Most people do not pay a premium for Part A as it is typically funded through payroll taxes.
2. Medicare Part B: Medical Insurance - This part covers medically necessary services such as doctors' services, outpatient care, medical supplies, and preventive services. Part B has a monthly premium, which is deducted from the beneficiary's Social Security, Railroad Retirement, or Civil Service Retirement benefit.
3. Medicare Part C: Medicare Advantage Plans - These are private health plans approved by Medicare that combine Part A, Part B, and often Part D coverage into a single plan. Medicare Advantage Plans can offer additional benefits and may have different rules for how you receive services.
4. Medicare Part D: Prescription Drug Coverage - This part assists beneficiaries in paying for prescription drugs. It is available through private insurance companies contracted with Medicare.
Medicare also offers supplemental coverage through Medigap policies, which help pay for some of the out-of-pocket costs that Original Medicare does not cover, such as copayments, coinsurance, and deductibles.
In summary, Medicare is a federal health insurance program in the United States that provides coverage for seniors and certain other individuals. It is divided into four parts, each offering different types of coverage, and it plays a crucial role in the American healthcare system.