The Medicare Program

Medicare is a health insurance program for:

• People age 65 or older.
• People under age 65 with certain disabilities.
• People with End-Stage Renal Disease (permanent kidney failure requiring dialysis or a kidney transplant)

The Original Medicare Has Two Parts

Medicare Advantage Plans are health plan options that are approved by Medicare but run by private companies. They are part of the Medicare Program, and sometimes called "Part C." When you join a Medicare Advantage Plan, you are still in Medicare. (see Medicare Part C) With Medicare Advantage Plans:

Medicare Part A (2019)

Part A is Hospital Insurance and covers cost associated with confinement in a hospital or skilled nursing facility. (see Medicare Part A)

Medicare Part B (2019)

Part B is Medical Insurance and covers physicians services, outpatient care, test, and supplies. (see Medicare Part B)

Medicare started offering insurance coverage for prescription drugs through Medicare prescriptions drug plans and other health plan options. Medicare's prescription drug coverage will typically pay over half of your drug costs, for a monthly premium. (see Medicare Part D)

A Medigap policy is a health insurance policy sold by private insurance companies to fill "gaps" in Original Medicare Plan coverage. Every Medigap policy must follow federal and state laws designed to protect you, and they must be clearly identified as “Medicare Supplement Insurance.” Insurance companies can sell you only a “standardized” policy identified in most states by letters A through D, F through G, and K through N. All policies offer the same basic benefits, but some offer additional benefits so you can choose which one meets your needs. In Massachusetts, Minnesota, and Wisconsin, Medigap policies are standardized in a different way.