What is Medicare?
Medicare is a government supplied healthcare program intended for three different groups of people:

1. People age 65 or older.
2. People under age 65 with certain disabilities.
3. People of all ages with End-Stage Renal Disease (permanent kidney failure requiring dialysis or a transplant.

There are 4 Medicare Healthcare options that can be used both independently as well as in conjunction with other programs. The 4 options are:

1. Part A – “Hospital Insurance”
2. Part B – “Medical Insurance”
3. Part C – “Medicare Advantage Plans”
4. Part D – “Prescription Drug Plan”

Part A – Hospital Insurance
Typically, consumers do not pay for this part. Once consumers turn the age of 65, Medicare Part A will begin as long as either their spouse or themselves have paid Medicare Taxes while they were working. Part A includes care in hospitals as an inpatient, critical access hospitals (small facilities that give limited outpatient and inpatient services to people in rural areas), skilled nursing facilities (not custodial or long-term care), hospice care, and some home health care.

Part B – Medical Insurance
Part 2 is a premium based healthcare plan that provides physician services, outpatient hospital care and some other medical services that Part A does not cover. In 2008 most people will pay close to $100 per month. Enrollment in Part B is a consumer’s choice, but premiums could rise the longer you wait after turning the age of 65. Enrollment begins 3 months before your 65th birthday and will continue for 4 months past your birthday (totaling 7 months).

Part C – Medicare Advantage Plans
Medicare Advantage Plans are managed by private insurance companies and can combine Parts A, B & sometime D. These plans cover medical necessities and will have varying fees associated with it (co-pays, deductibles, coinsurance).

Part D – Prescription Drug Plans
The Prescription Drug plan allows consumers to purchase prescription drugs at lower costs.

Reference:
http://www.medicare.gov/