What is Medicare?
Medicare is a national health insurance program, administered by the Centers for Medicaid and Medicare Services of the U.S. federal government which started in 1966 under the Social Security Administration. It is a federal health insurance program for people who are 65 or older but can also cover those under 65 with a particular disability.
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Generally, there are four main parts to Medicare.
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Part A which primarily covers:
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Hospital inpatient care
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Skilled nursing facility
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Limited, medically necessary, home health care
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Hospice care
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Part B which primarily covers:
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Most medically necessary doctor services
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Preventive services such as annual wellness exams and flu shots
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Hospital and clinic outpatient services
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Radiology (x-rays, CT scans and MRIs)
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Laboratory tests
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Outpatient mental health care
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Durable medical equipment
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Ambulance transportation
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Limited, usually temporary, home health care
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Part C which primarily covers:
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Commonly known as Medicare Advantage - or- Option 2 (See below diagram)
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Provides an alternative way to receive your Original Medicare (Part A and Part B) coverage
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Typically, these plans are offered by private insurance companies that have contracts with the Medicare program
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They cover everything Original Medicare covers (excluding hospice care, which remains covered through Medicare Part A)
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Part D which primarily covers:
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Commonly known as Medicare Supplement* -or- Option 1 (See below diagram)
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Covers prescription drugs through private insurance companies contracted with the Medicare program
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Such prescription drug cover stand-alone Medicare Part D Prescription Drug Plans, hence the Medicare formulary drug plans (Speak with a Medicare Insurance Agent or visit www.Medicare.gov for more information).
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*Medicare Supplement (Medigap) plan helps pay for Medicare Part A and Part B out-of-pocket costs.
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