Overview
Medicare, the United States health insurance program, was signed into law by President Johnson in July 1965, and Americans started receiving coverage in 1966. Medicare was created for people aged 65 and older and people under age 65 with certain disabilities such as End-Stage Renal Disease. Medicare is run by CMS, the Centers for Medicare and Medicaid Services.
Medicare had only two parts when first implemented. Known as “Original Medicare”, it included Part-A Hospital Insurance (Inpatient Care) and Part-B Medical Insurance (Outpatient Care). Its initial intention was to help pay for hospital and medical bills only, it was not intended to help people stay healthy – preventive services like well-visits and screenings were not added until much later.
Original Medicare (Part-A and Part-B) will cover 80% of all Medicare approved costs. It is important to note that the government also created Medicare Supplement plans (also known as MediGap plans) with the intention that they be offered by private insurance companies to cover the remaining 20% of all Medicare approved costs for all recipients. There are ten Medicare Supplement plans from which to choose, and they are offered by hundreds of private insurance companies. The experienced agents at Benefit Marketplace will assist you to understand your choices.
Medicare Part-C Advantage Plans were introduced in 1997 as an alternative way for beneficiaries to receive their benefits from private insurers contracted with Medicare. These plans replace Original Medicare, offering different types of plans including HMOs, PPOs, Special Needs Plans, Private Fee for Service Plans, and Medicare Savings Accounts.
Medicare Part-D Prescription Drug Plans were introduced in 2006. They are filed by State and offered by private insurance companies with Medicare contracts. They are designed to reduce the cost of prescription drugs. It is extremely important that recipients reevaluate their drug plan options each year to continue receiving the best, most affordable coverage.
Please click on the links below to learn more about the different parts of Medicare: