Medicare is a federal health insurance program for U.S. adults age 65 or older and younger people who receive disability benefits.
What is Medicare?
Medicare has four parts — Part A, Part B, Part C and Part D. Each part offers specific coverage and varies in cost[1]:
- Part A covers hospital care and related services.
- Part B covers doctor appointments and outpatient medical care.
- Part C covers the same benefits of Parts A and B but is offered by private insurers.
- Part D covers prescription drugs.
Medicare stands as a cornerstone of healthcare coverage for millions of Americans, particularly those aged 65 and older, as well as certain individuals with disabilities or specific medical conditions. It’s a federal health insurance program that helps cover various healthcare expenses, yet navigating its intricacies can be complex. Let’s delve into what Medicare is, its different parts, and the extent of coverage it offers.
What is Medicare?
Enacted in 1965, Medicare provides health insurance for individuals aged 65 and older, as well as for younger people with disabilities or specific medical conditions. Administered by the Centers for Medicare & Medicaid Services (CMS), Medicare aims to ensure that beneficiaries have access to essential healthcare services without facing insurmountable financial burdens.
The Parts of Medicare:
Medicare is divided into several parts, each addressing different aspects of healthcare coverage:
- Medicare Part A (Hospital Insurance):
- Covers inpatient hospital care, skilled nursing facility care, hospice care, and some home health care services.
- Most beneficiaries do not pay a premium for Part A if they or their spouse paid Medicare taxes while working.
- Medicare Part B (Medical Insurance):
- Covers doctor visits, outpatient care, preventive services, and medical supplies.
- Beneficiaries pay a monthly premium for Part B coverage, which can vary based on income.
- Medicare Part C (Medicare Advantage):
- Offered by private insurance companies approved by Medicare, Part C plans provide coverage for Part A, Part B, and often additional benefits like dental, vision, and prescription drugs.
- Beneficiaries must be enrolled in both Part A and Part B to join a Medicare Advantage plan.
- Medicare Part D (Prescription Drug Coverage):
- Provides prescription drug coverage through private insurance companies approved by Medicare.
- Beneficiaries typically pay a monthly premium for Part D coverage in addition to any premiums for Part A or Part B.
Medicare eligibility
You’re entitled to Medicare if you’re at least 65 and a U.S. citizen, or a permanent legal resident for the past five years. Medicare also covers some people under age 65 who have a disability. People who receive Social Security disability insurance usually become eligible for Medicare after a two-year waiting period. However, those with end-stage renal disease (permanent kidney failure) are enrolled automatically upon signing up and those with amyotrophic lateral sclerosis (ALS, also known as Lou Gehrig’s disease) are eligible the month disability begins
What Does Medicare Cover?
Medicare coverage encompasses a broad range of healthcare services, including:
- Hospital Services: Part A covers inpatient hospital care, including semi-private rooms, meals, general nursing, and other hospital services and supplies.
- Medical Services: Part B covers doctor visits, outpatient care, preventive services such as screenings and vaccinations, and durable medical equipment like wheelchairs or walkers.
- Prescription Drugs: Part D covers prescription medications, with different plans offering varying formularies and copayments.
- Preventive Care: Medicare covers numerous preventive services, including screenings for cancer, cardiovascular disease, diabetes, and other chronic conditions.
- Home Health Care: Part A and Part B cover certain medically necessary services provided at home for individuals who are homebound and under the care of a doctor.
- Hospice Care: Medicare covers hospice care for individuals with terminal illnesses, including pain relief, medical and support services, and grief counseling for family members.
What Isn’t Covered by Medicare?
While Medicare offers comprehensive coverage, it doesn’t cover all healthcare expenses. Some services and items not covered by Original Medicare (Part A and Part B) include:
- Dental Care: Routine dental care, including cleanings, fillings, and dentures, is generally not covered by Medicare.
- Vision Care: Routine eye exams, eyeglasses, and contact lenses are not covered, except in certain cases such as diabetic retinopathy or cataract surgery.
- Long-Term Care: Medicare does not cover most long-term care services, including assistance with activities of daily living in nursing homes or assisted living facilities.
- Cosmetic Surgery: Procedures performed solely for cosmetic purposes are generally not covered by Medicare.
- Alternative Therapies: Services like acupuncture and chiropractic care are not covered by Original Medicare.
Medicare at a glance
| Coverage | Cost | |
|---|---|---|
| Part A | Inpatient hospital or skilled nursing facility care. | Premium: $0 for most people; but up to $505 per month in 2024 for those who don’t qualify for premium-free Part A. Deductible: $1,632 in 2024. |
| Part B | Doctor visits and preventive services. | Premium: Starts at $174.70 per month in 2024.Deductible: $240 in 2024. |
| Part C | The same coverage as Parts A and B, plus additional benefits that may include cost help with vision, hearing and dental care. | Premium: Continue to pay Part B premium, plus premium billed by private insurer. (Some plans have $0 premiums.)Out-of-pocket limit: As much as $8,850 in 2024. |
| Part D | Generic and brand-name prescription drugs. | Premium: Varies by private insurer; average is $34.50 in 2024 for basic coverage. |
Understanding Medicare and its coverage options is crucial for ensuring access to necessary healthcare services while managing costs effectively. Beneficiaries should carefully review their coverage options, including Original Medicare, Medicare Advantage plans, and prescription drug plans, to choose the options that best meet their healthcare needs and budgetary considerations. Additionally, staying informed about Medicare updates and changes can help beneficiaries make informed decisions regarding their healthcare coverage now and in the future.
