What is Medicare?
Medicare is the health insurance program provided and regulated by the U.S. federal government. It was signed into law by President Lyndon B. Johnson in 1965, along with Medicaid, and has been protecting the health and general well-being of American families, evolving through the years to be attune with the times. Medicare is designed for specific people, namely:
- individuals aged 65 years and up,
- younger people with disabilities, and
- those who have been diagnosed with end-stage renal disease (ESRD).
Medicare was created to provide citizens easier and a more affordable access to basic healthcare services and products, as well those that are related to serious illnesses. The government fund Medicare and its providers from payroll tax revenues, general revenues, and premiums that beneficiaries pay. It is not totally free, as members will still need to shell out a monthly premium, though the amount is minimal.
In 2019, Medicare Part A remains to be free of charge, while Medicare Part B is $135.50 per month (from $134 in 2018).
Parts of Medicare
Medicare is divided into four parts: Part A: Hospital, Part B: Medical, Part C: Medicare Advantage, and Part D: Prescription Drug Coverage.
Part A and Part B are the most basic and necessary, covering both in-patient and out-patient healthcare services and products. Part C or Medicare Advantage is provided through private insurance companies that transact with the government (specifically the Centers for Medicaid Services, CMS). Part D covers prescription medications and has an average nationwide premium of $33.19 per month for 2019. Part D costs vary depending on the type of plan that you select and where you live.
Part A (Hospital Insurance)
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Part B (Medical Insurance)
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Inpatient hospital care Limited home health care services Time in a skilled nursing facility (limited)Hospice care | Non-hospital medical expenses: such as blood tests x-rays clinic visits diabetic screening outpatient hospital care |
Plan C (Medicare Advantage)
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Part D Prescription Drugs
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Includes each Medicare offering in one package This plan is optional but requires being enrolled to Part A and Part B first |
Coverage depends on what drugs are needed and how much they costCosts may include a flat copayment amount, a deductible, or a percentage
of the full price of the drug (also called coinsurance)
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Everybody who is turning 65 should expect to sign up for Medicare before their birthday. Otherwise, they might face penalties and surcharges for enrolling late. Overall, Medicare is really a mandatory government-provided health insurance product that ensures all Americans are healthy and well in times of durability or during their twilight years.
