Signed into law by President Lyndon Johnson in 1965, Medicare initially only had two parts.
Since that time, the program has expanded to include more parts and, with that, more benefits.
Medicare Part A: Hospital Coverage
Part A is your hospital insurance.
Verywell / Illustration by Brianna Gilmartin
Do not assume this means everything will be paid in the long haul.
Medicare hasstrict rulesthat limit how long it will cover these services, if at all.
Hospital stays can get expensive.
Medicare Part B: Medical Coverage
Part B is your medical insurance.
The bulk of health care you receive will be in the outpatient setting, meaning out of the hospital.
Medicare Advantage plans are offered by private insurance companies that have signed contracts with the federal government.
In addition, there are other types of Medicare health plans.
These may provide both Part A and Part B, but many provide only Part B coverage.
One key in is a Medicare Cost Plan, available in certain areas of the United States.
Each plan has a differentmedication formulary, and each Medicare beneficiary must decide which plan best fits their needs.
No one plan covers all medications.
Medigap plans are the same across all states, with the exceptions of Massachusetts, Minnesota, and Wisconsin.
Medigap plans dont actually add extra benefits to your Medicare coverage.
There is anOpen Enrollment Periodevery year for people who want to change their Medicare coverage.
The open enrollment period happens every year from October 15 to December 7.
How Much Medicare Costs
Medicare is often referred to associalized medicine, but it isnt free.
Though it may be more affordable than some private insurance plans, many Americans struggle to afford health care.
These are volunteer-run programs that receive funding from the federal government to guide you.
Alternatively, you’re free to hireprivate consultantsto assist you with any issues.
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Centers for Medicare & Medicaid Services.CMS fast facts.
Centers for Medicare & Medicaid Services.Medicare program - general information.
Centers for Medicare & Medicaid Services.Why health insurance is important: protection from high medical costs.
Centers for Medicare & Medicaid Services.2024 Medicare Parts A & B premiums and deductibles.
KFF.Medicare Advantage in 2024: enrollment update and key trends.
Centers for Disease Control and Prevention.Therapeutic drug use.
Centers for Medicare & Medicaid Services.Whats Medicare Supplement Insurance (Medigap)?
Centers for Medicare & Medicaid Services.When does Medicare coverage start?
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Centers for Medicare & Medicaid Services.Medicare open enrollment.
Centers for Medicare & Medicaid Services.Avoid late enrollment penalties.
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Centers for Medicare & Medicaid Services.Monthly premium for drug plans.
