About the Medicare program

In order to help your friend or loved one get the most from their Medicare benefits, it’s important to understand the basics of the Medicare program.

Medicare is a federal insurance program for people age 65 and older, and for many younger adults with disabilities. The Original Medicare Plan is a fee-for-service health plan that lets Medicare beneficiaries see doctors, hospitals or other health care providers who accept the plan. Medicare pays a portion of the beneficiary’s health care bills and the beneficiary pays the rest.

Original Medicare consists of two parts. Medicare Part A (hospital insurance) helps pay for inpatient hospital care, skilled nursing facility care following a hospital stay, hospice care and some home health care. People with Medicare usually pay no premium for their Part A coverage. Medicare Part B (medical insurance) helps pay for doctors’ services, outpatient hospital care and some other medical services when they are medically necessary. People with Medicare usually pay a monthly premium for their Part B coverage.

Medicare Part D (prescription drug insurance) is a relatively new part of the Medicare program. It is common for people with Original Medicare to purchase a stand-alone Part D policy in addition to their Original Medicare coverage.

Original Medicare is a good insurance option for some people, but it usually does not pay for all of a person’s health care needs. Many people find they need extra coverage to help them pay for the things that Original Medicare does not cover. In the next section, we’ll explain some of the ways you can supplement or expand upon Original Medicare.

Click Here to download a copy of Medicare Basics: A Guide for Families and Friends of People with Medicare, published by the U.S. Centers for Medicare and Medicaid Services.