Medicare is a federal health insurance program primarily for Americans aged 65 and older, as well as certain younger people with disabilities. It consists of Part A (hospital insurance, usually premium-free), Part B (medical insurance, with monthly premiums), Part C (Medicare Advantage, private plan alternatives), and Part D (prescription drug coverage). Medicare does not cover all healthcare costs, and many beneficiaries purchase supplemental Medigap policies.
Medicare
Definition
Medicare is a federal health insurance program primarily for Americans aged 65 and older, as well as certain younger people with disabilities. It consists of Part A (hospital insurance, usually premium-free), Part B (medical insurance, with monthly premiums), Part C (Medicare Advantage, private plan alternatives), and Part D (prescription drug coverage). Medicare does not cover all healthcare costs, and many beneficiaries purchase supplemental Medigap policies.
Example
A 65-year-old enrolling in Medicare would receive Part A for free (if they paid Medicare taxes for 10+ years), pay approximately $185/month for Part B, and optionally add Part D drug coverage for $30-50/month.
Key Points
- 1Available at age 65 or with qualifying disability
- 2Part A: hospital, Part B: medical, Part C: Advantage, Part D: drugs
- 3Part B has income-related premium adjustments (IRMAA)
- 4Does not cover long-term care, dental, or vision (without Advantage)
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