Medicare is a health insurance program for:

• people age 65 or older,
• people under age 65 with certain disabilities, and
• people of all ages with End-Stage Renal Disease (permanent kidney failure requiring dialysis or a kidney transplant).

Part A - Hospital Insurance
Most people don't pay a premium for Part A because they or a spouse already paid for it through their payroll taxes while working. Medicare Part A (Hospital Insurance) helps cover inpatient care in hospitals, including critical access hospitals, and skilled nursing facilities (not custodial or long-term care). It also helps cover hospice care and some home health care. Beneficiaries must meet certain conditions to get these benefits.

Part B - Medical Insurance
Medicare Part B (Medical Insurance) helps cover doctors' services and outpatient care. It also covers some other medical services that Part A doesn't cover, such as some of the services of physical and occupational therapists, and some home health care. Most people pay a monthly premium for Part B and a copayment of approximately 20% of the physician's fee, which is determine by Medicare's fee schedule. 

Most but not all physicians accept patients covered by Medicare Part B. Please check with your physician.

Part C - Medicare Advantage
Medicare Part C (Medicare Advantage) is available to persons who are eligible for Part A and enrolled in Part B. Under Part C, private health insurance companies contract with the federal government to offer Medicare benefits through their own policies.  Private insurance companies offer managed care plans, such as health management organizations (HMOs), preferred provider organizations (PPOs), and Private Fee for Service (PFFS) plans, and may offer benefits above what is offered under Parts A and B.  Patients are often limited in their choice of physicians since the plans may restrict patients to choosing from physicians with whom the insurance companies has contracted.

Many physicians do not accept certain Medicare Advantage plans because they are not contracted with the private insurer to offer the plan.  If you are considering a Medicare Advantage plan, check with your physician to determine whether it will impact your ability to continue seeing them.  

Part D - Prescription Drug Coverage
Most people will pay a monthly premium for this coverage. Starting January 1, 2006, new Medicare prescription drug coverage will be available to everyone with Medicare. Private companies provide the coverage. Beneficiaries choose the drug plan and pay a monthly premium. Like other insurance, if a beneficiary decides not to enroll in a drug plan when they are first eligible, they may pay a penalty if they choose to join later.