What is Medicare?

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Medicare is the federal health insurance program primarily for people age 65 and older. It also provides coverage for certain younger individuals with qualifying disabilities and people with End-Stage Renal Disease (ESRD) or Amyotrophic Lateral Sclerosis (ALS).

Medicare helps cover many healthcare services, including hospital stays, doctor visits, preventive care, medical equipment, and prescription drugs. While it pays for a significant portion of healthcare expenses, it does not cover every cost. Depending on the type of Medicare coverage you choose, you may still be responsible for premiums, deductibles, copayments, and coinsurance.

Medicare coverage is named by letters because Congress expanded the program over time. Rather than renaming the entire program with each addition, each new type of coverage was assigned a letter.

Here's how the lettering developed:

• Part A – Hospital Insurance 
  • Covers inpatient hospital stays, skilled nursing facility care (under certain conditions), hospice, and some home health care. 
  • Introduced in 1965 when Medicare was created. 
• Part B – Medical Insurance 
  • Covers doctor visits, outpatient services, preventive care, lab work, durable medical equipment, and more. 
  • Also introduced in 1965.
• Part C – Medicare Advantage 
  • Originally called Medicare+Choice in 1997 and later renamed Medicare Advantage in 2003. 
  • Allows beneficiaries to receive their Part A and Part B benefits through private insurance companies approved by Medicare. 
  • Often includes prescription drug coverage and additional benefits.
• Part D – Prescription Drug Coverage