how does medicare work?

What is Medicare? Medicare is health insurance for:

• People 65 or older

• Certain people under 65 with disabilities

• People of any age with End-Stage Renal Disease (ESRD)

• What are the different parts of Medicare?

Medicare Part A (Hospital Insurance) helps cover:

• Inpatient care in hospitals

• Skilled nursing facility care

• Hospice care

• Home health care

Medicare Part B (Medical Insurance) helps cover:

• Services from doctors and other health care providers

• Outpatient care

• Home health care

• Durable medical equipment

• Many preventive services

How can I enhance

my coverage?

Medicare Part C

• Includes all benefits and services covered under Part A and Part B

• Run by Medicare-approved private insurance companies that follow rules set by Medicare

• Usually includes Medicare prescription drug coverage (Part D) as part of the plan

• Plans have a yearly limit on your out-of-pocket costs for medical services

• May include extra benefits and services that aren’t covered by Original Medicare, sometimes for an extra cost

Add a Prescription Drug Plan (Medicare Part D):

• Helps cover the cost of prescription drugs

• Run by Medicare-approved drug plans that follow rules set by Medicare

• May help lower your prescription drug costs and help protect against higher costs in the future

Add a Supplement and a Prescription Drug Plan

A Medicare Supplement Insurance (Medigap) policy helps pay some of the health care costs that Original Medicare doesn't cover, like:

• Copayments

• Coinsurance

• Deductibles

Medigap policies are sold by private companies. Some Medigap policies also cover services that Original Medicare doesn't cover, like medical care when you travel outside the U.S. If you have Original Medicare and you buy a Medigap policy, here's what happens:

• Medicare will pay its share of the Medicare-approved amount for covered health care costs.

• Then, your Medigap policy pays its share.