Healthcare Planning.
Medicare is a federal health insurance program for people 65 and older and those under 65 with a qualifying disability. It is funded in part by taxes paid while you are working, and premiums paid while receiving benefits. Medicare is coverage for individuals, not families.
Medicare is split into four parts:
- Part A:Medicare Part A helps pay for inpatient care you get in hospitals, critical access hospitals, and skilled nursing facilities. It also helps cover hospice care and some home health care.
- Part B:Part B helps cover Services from doctors and other health care providers, outpatient care, home health care, durable medical equipment (like wheelchairs, walkers, hospital beds, and other equipment), and any preventive services (like screenings, shots or vaccines, and yearly “Wellness” visits).
- Part C:Medicare Advantage offers an alternative to Original Medicare for your health and drug needs. You get benefits through a private health plan that Medicare approved. These “bundled” plans include Part A, Part B, and usually Part D.
- Part D:Part D helps cover the cost of prescription drugs (including many recommended shots or vaccines). You join a stand-alone Medicare drug plan in addition to Original Medicare, or you get it by joining a Medicare Advantage Plan with drug coverage. Plans that offer Medicare drug coverage are run by private insurance companies that follow rules set by Medicare.
Many people qualify for premium-free Medicare Part A because they or their spouse paid Medicare taxes while working. Generally, you may qualify if Medicare taxes were paid for at least 40 calendar quarters, or approximately 10 years.
Medicare Part B has a monthly premium and an annual deductible. Most beneficiaries pay the standard premium, while individuals with higher incomes may pay an additional income-related amount called the IRMAA Penalty.