Medicare is a public health insurance program that is run by the Federal government. Signed into law in July 1965, it provides low cost health care for the elderly. This includes hospitalization, medical and prescription drug insurance. It should not be confused with Social Security, as they are two different programs.
To qualify for Medicare benefits, you must be at least 65 years of age. There are a variety of different qualifications for Social Security. This is an important distinction for those who are considering early retirement and believe they will be able to collect their benefits from both programs.
The original program is administered by the government and consists of two parts. Part A pertains specifically to hospital insurance and Part B addresses medical insurance. In 2006, another government run portion was created. These Medicare benefits are called Part D and they include prescription drug coverage. Medications that are taken while in the hospital are covered by Part A.
As the original part of the plan is considered "fee for service" insurance, there is no limitation on the type of doctor Medicare beneficiaries can see, as there are in an HMO. However, they do need to see a physician or go to a hospital that participates in the program.
Medicare benefits that are covered by Parts B and D are optional. Not choosing them will not affect your Part A coverage. If you choose to take advantage of Part D, there is an additional fee. The Medicare Advantage plan, otherwise known as Part C combines the coverage of all three, A, B and D.
There are over 1,800 different prescription drug plans and choosing the right one for you can often be confusing. The government as well as non-profit groups and third party vendors provide advice and counseling on this particular topic.
In some cases there is a fee and in others there is no charge. The Medicare web site provides free information and helps you decide which plan will be best for you. You can change your Medicare benefits, regardless of which of the plans you have chosen. Parts A and B can be updated at any time and changes take effect at the beginning of the following month.
Part D changes must be made between November 15 and December 31. An individual is eligible to sign up for Medicare beginning three months before their 65th birthday and all paperwork needs to be completed no more than ninety days after their birth date.