Explain the Medicare Insurance Plan

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.