Medicare is federal health insurance for persons over 65 and certain persons with disabilities under age 65. Most people over 65 who have been employed or married to or divorced from someone who was employed are eligible for Medicare. Others may be eligible to enter the program by paying a small premium or by meeting certain income limits. Medicare is divided into four parts: A, B, C, and D. The program is run by the Centers for Medicare and Medicaid Services (CMS) www.cms.hhs.gov/ , in cooperation with the Social Security Administration. http://www.ssa.gov/

Medicare Part A is hospital insurance and covers most hospital bills and a very limited amount of physician-authorized home health care and nursing home care. Medicare beneficiaries are responsible for certain deductibles and co-payments.

Medicare Part B is medical insurance and covers medical bills, including most doctor’s fees, medical equipment, diagnostic tests, outpatient care, and some medications. A monthly premium is required and can be deducted automatically from Social Security payments. The annual deductible must be met before payments begin and a co-payment of 20% is required in most cases.

Medicare Part C includeds Medicare Advantage plans, like health maintenance organizations (HMO’s) and Preferred Provider Organizations (PPO’s). These are managed care plans and other options from which Medicare beneficiaries may choose. Some plans charge no premium.

Medicare Part D provides options for prescription drug coverage for everyone with Medicare. This coverage may lower prescription drug costs and protect against higher costs in the future. If you join a Medicare drug plan, you usually pay a monthly premium. Part D is optional. If a beneficiary does not enroll in a Part D plan when he or she first becomes eligible, the beneficiary may pay a penalty. These plans are run by insurance companies and other private companies approved by Medicare.(source)