How Does Medicare Work?

In 1965, Congress established a federally-funded health insurance program that provided healthcare benefits to senior citizens (65 years of age or above), disabled people (younger than 65) and folks of any age with end-stage renal disease (permanent kidney failure). CMS (The Centers for Medicare and Medicaid Services) is the name of the organization, which manages Medicare. But it is the Social Security Offices, which enroll applicants to join this program and also provide detailed information about it.

Medicare has been designed to act as an adjunct to other kinds of health care insurance coverage. Most of the Americans qualify for Medicare as soon as they turn 65, but they need to have contributed in the form of "Social Security Taxes" for at least ten years.

CARE IMPROVEMENT PLUS PROVIDER

Medicare coverage can be categorized into four parts namely Part A, Part B, Part C and Part D.

Medicare Part A is commonly known as "Hospital Insurance or HI" and provides basic health care coverage. It covers In-Patient hospital charges, skilled nursing care, home medical care services and sanatorium care. This coverage is premium-free as the individual has already contributed to the system in the form of Social Security Taxes.

Medicare Part B is commonly known as "Medical Insurance or MI" and offers coverage for Medically-necessary services, which are not covered by Part A. These services include Outpatient hospital charges, Diagnostic tests, occupational and physical therapy and the use of some medical equipment as well. Part B involves a monthly premium, which is calculated on the basis of an individual's monthly income. Medicare Part B does not cover routine checkups and also charges co-pays and deductibles.

Medicare Part C is commonly known as "Medical Advantage Plan. Under this plan the Medicare beneficiaries avail all the benefits included in part A and B. the plus point is that these insurers also get some additional coverage like dental and vision.

Medicare Part D is also known as "Prescription Drug Plan" and is the most recent Medicare program. Medicare enters into a contract with other insurance providers, to offer drug coverage. The insurer needs to pay some extra monthly premium in order to avail prescription drug benefits.

Only part A and part B come under "Original Medicare Plan". But the original plan does not provide a proper healthcare coverage. The gaps left by the original plan can be covered by opting for MediGap Insurance also known as "Medicare Supplemental Insurance".

How Does Medicare Work?

CARE IMPROVEMENT PLUS PROVIDER