Medicare is a federal program that provides health insurance to retired individuals, regardless of their medical condition, and some younger people with disabilities or certain health conditions.
You can receive Medicare coverage either by enrolling in Original Medicare or a Medicare Advantage Plan (typically an HMO or a PPO). Original Medicare is divided into hospital insurance (Part A) and medical insurance (Part B), which are run by the federal government. Medicare Advantage Plans (Part C) are offered by private, Medicare-approved insurance companies. Medicare Prescription Drug Plans (Part D) may also be available at an additional cost to those enrolled in Original Medicare or included in Medicare Advantage Plans.
Part A (hospital insurance) helps cover inpatient care in a hospital (but not physicians’ fees), a limited amount of post-hospital care in a skilled nursing facility, hospice care, and some home health care.
Part B (medical insurance) helps cover physicians’ services, inpatient and outpatient medical services, outpatient hospital care, and diagnostic tests. Part B covers medically necessary services or supplies and preventive services.
Part C (Medicare Advantage) plans provide benefits and services covered under Parts A and B and may offer additional coverage such as vision, hearing, dental, and other health and wellness services. Many plans include prescription drug coverage.
Part D (prescription drug coverage) plans help cover the cost of prescription drugs and are available from private, Medicare-approved insurance companies. Each Medicare Prescription Drug Plan has its own list of covered drugs.
Of course, Medicare doesn’t cover everything. You may need to purchase supplemental health insurance such as a Medigap plan (if you’re enrolled in Original Medicare) or specialized insurance (such as a long-term care policy).
For more information about Medicare coverages and costs, visit Medicare.gov.
Copyright 2006-Broadridge Investor Communication Solutions, Inc. All rights reserved.
Broadridge Investor Communication Solutions, Inc. does not provide investment, tax, or legal advice. The information presented here is not specific to any individual’s personal circumstances.
To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.
These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.
*Non-deposit investment products and services are offered through CUSO Financial Services, L.P. (“CFS”), a registered broker-dealer (Member FINRA / SIPC) and SEC Registered Investment Advisor. Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. Coastal Federal Credit Union has contracted with CFS to make non-deposit investment products and services available to credit union members.
CFS representatives do not provide tax or legal guidance. For such guidance please consult with a qualified professional. Information shown is for general illustration purposes and does not predict or depict the performance of any investment or strategy. Past performance does not guarantee future results.
Trust Services are available through MEMBERS Trust Company. CFS* is not affiliated with Members Trust Company.