Medicare is a government-administered program that provides health insurance benefits for adults age 65 or older, and younger people with certain disabilities.
Medicare is funded in part by payrolls taxes, which are taken out of your paycheck automatically by your employer. Monthly premium payments are usually deducted from your Social Security checks.
Medicare has four parts, or types of coverage, you can choose from:
- Part A (hospital insurance) covers inpatient care in a hospital or skilled nursing facility. Part A also pays for some at-home and hospice care.
- Part B (medical insurance) covers doctor’s appointments, outpatient hospital care, home health care, durable medical equipment (DME), and some preventive services.
- Part C (Medicare Advantage) includes everything covered under Part A and Part B. Some plans also include prescription drugs and other health services.
- Part D (Medicare prescription drug coverage) covers approved medications prescribed by a doctor.