Medicare Health Insurance
Medicare is the American government's health insurance for people 65 or older. However, people under the age of 65 with disabilities such as End-Stage Renal Disease or amyotrophic lateral sclerosis (Lou Gehrig's disease) are also eligible. Each employee and employer pays for a portion of Medicare with their payroll taxes, and it is also financed by monthly premiums deducted from Social Security checks.

The Four Parts of Medicare

Hospital Insurance (Part A)
Under this plan, coverage is provided without having to pay a monthly premium because the insured, or their spouses, paid Medicare taxes while working. Part A helps cover inpatient care in hospitals, critical access hospitals, and skilled nursing facilities. It also helps cover hospice care and some home health care. You must meet certain criteria, however, before receiving these benefits.

Medical Insurance (Part B)
Doctors' services, outpatient care, and other medical services not covered by Part A are covered by Part B. This part of Medicare is optional and helps pay for services deemed medically necessary. Part B also helps defray the cost of exams, lab tests, screenings and other preventive services.

Medicare Advantage Plans (Part C)
Plans like HMOs and PPOs are included in Part C. The benefit of this plan is that it allows you to choose your health care services through one of these provider organizations under Part C. However, you must have both Medicare Part A and Part B and live in the plans' service area in order to join an Advantage Plan.

Prescription Drug Coverage (Part D)
This type of coverage helps pay for medications prescribed by doctors. You are eligible for this type of coverage no matter what Medicare plan you have. There are two types of Medicare prescription drug plans. One adds coverage to the Original Medicare Plan, some Medicare Cost Plans, some Medicare Private Fee-for-Service Plans and Medicare Medical Savings Account Plans if you join one. The other offers prescription drug coverage that is a part of Medicare Advantage Plans and other Medicare plans. Both these plans are available through insurance companies and other private companies approved by Medicare.