Understanding Medicare: A Comprehensive Guide to Coverage & Parts

The Medicare insurance plan provides health insurance coverage for many elderly and disabled people. Not all health care providers accept Medicare but many do. Recipients must pay a co-pay for some services.

Parts of Medicare

• The Medicare insurance plan consists of several parts. Part A covers inpatient medical care. Part B covers outpatient medical care. Part D covers prescription drugs. Part C offers Medicare recipients the option to select from a number of different plans that will replace Medicare Parts A and B.

Cost

• Medicare recipients must pay a monthly premium for Parts B and D. Recipients that choose Part C must also pay a premium. Most people receive Part A at no cost. Those with low incomes may qualify for assistance with monthly premiums.

How to Apply

• Most people do not need to apply for Medicare. Shortly before they qualify, they will receive a letter from the Social Security Administration explaining the benefits they can receive, the monthly premiums and what choices they have.