Medicare is a government funded health insurance for people over 65. Certain people under 65 can
receive Medicare benefits, including those with certain disabilities and those with End-Stage Renal
Disease, a type of permanent kidney failure).

Medicare has different parts that cover different types of services that have different costs.

1.        Medicare Part A coverage hospital care. Part A is free for most people who paid Medicare taxes.
There may be a cost for those who were self-employed or didn’t work when they were younger.

2.        Medicare Part B covers doctors’ services, outpatient care, and some preventive services. Most
people will pay $96.40 for Part B coverage. However, those with personal income over $85,000 and
household income over $170,000 will pay higher premiums.

3.        Medicare Part C is provided by Medicare-approved private companies
and includes Part A, Part B, and other benefits like prescription drug
coverage. You’ll pay for Part B coverage along with a premium for the plan
itself.

4.        Medicare Part D lowers the cost of prescription drugs. Part D plans
have varying monthly premiums and annual deductibles.

People who choose to enroll in Medicare have the benefit of choosing
between a few choices.

    Original Medicare is run by the federal government and provides
       Part A and Part B coverage. Part D can be added to help reduce the
       cost of prescription drugs. There are some gaps in Part A and Part B
       Medicare coverage that may be filled with Medicare Supplement
       Insurance, also known as Medigap.

       Medigap is a private insurance plan that helps may for medical
       expenses that aren’t covered by Medicare. If you enroll in a Medigap
       plan, you’ll be subject to an extra insurance premium.

    Medicare Advantage Plans are run by Medicare-approved private
       companies. These plans include HMO and PPO choices that provide
       both Part A and Part B coverage. The amounts charged for services
       vary by plan and insurance company. Medicare Advantage Plans
       often include drug coverage and eliminate the need for Medigap
       insurance.

    Medicare Cost Plans are available only in certain parts of the United
       States. Unlike Medicare Advantage Plans, you are not required to
       have Part A. Charges from a non-network service provider are
       covered under Original Medicare. You can join a Medicare Cost
       Plan whenever the plan is accepting new members, rather than waiting for the general
       enrollment period. You also have the ability to leave the plan and return to Original Medicare at
       any time.

    From time to time, Demonstrations and Pilot programs are offered to test improvements to
       Medicare. Since these plans are for testing purposes only, they’re only offered for a limited
       period of time, in a specific area, and for a certain group of people.

    Programs of All-Inclusive Care for the Elderly or PACE provides services for frail elderly and
       disabled people who are 55 and older and have been certified by the state as needing care at
       nursing home level. To receive PACE benefits, you must live in a state that offers the program.

Medicare eligibility does not include Medicaid, which is commonly confused with Medicare coverage.
Medicaid is not part of Medicare. Instead, it’s a state-level government program designed to help low
income families pay for medical care.

You can receive more information about Medicare by calling 1-800-MEDICARE or by visiting www.
medicare.gov.

This article was submitted by Robert Valentine of Financial and Retirement Management.Robert Valentine is a well-known expert in the matters concerning investors. His articles on financial planning matters that concern investors have been published by several publications throughout the United States.