What Is Medicare?
Medicare is the Federal health insurance program that subsidizes medical care for anyone age 65 or older, younger people with disabilities, and patients with End-Stage Renal Disease (ESRD). Premiums are paid by individuals and employers.
Enrollment In Part A & B:
The majority of people who are eligible for Medicare part B (over 65) receive free hospital insurance (Part A). This is provided through their Social Security or Railroad Retirement Board benefits, or by paying premiums through payroll taxes they pay while working.
Individuals who are not eligible for Part A can choose to sign up for Part B and pay a monthly premium. Premiums are based on income, and higher-income beneficiaries may pay more.
If a person is not eligible for Medicare because they haven’t worked long enough or don’t pay their Social Security taxes, they can still purchase coverage through the private market. This is called a Medigap policy and covers the same benefits as original Medicare, but it usually has less network restrictions.
The government has negotiated contracts with private companies to offer managed care plans that include all Medicare parts. These plans offer a choice of doctors and hospitals, and extra benefits that aren’t covered by Original Medicare, like routine vision or dental care. Generally, these plans must follow Medicare rules and notify you about changes before they begin covering you for the next year.