Medicare is the federal health insurance program for people who are 65 and older, certain younger people with disabilities, and people with End-Stage Renal Disease (ESRD). There are four parts to Medicare; parts A, B, C, and D.
- Part A covers hospitals, skilled nursing facilities, and hospice
- Part B covers doctor visits, outpatient care, medical equipment, and some preventative services
- Part C (The Medicare Advantage Plan) covers all the services that Part A covers EXCEPT hospice care
- Part D is your Medicare Prescription Drug Plan
Original Medicare, which is Part A and Part D, covers about 80% of medical costs. That leaves 20% of medical costs the responsibility of the individual. Medicare Advantage, Supplement Plans and Part D help to cover that 20%.