Medicare is a federal health insurance program for seniors (people aged 65 years and above), young individuals with disabilities, or people with an end-stage renal disease. Medicare programs cover plans and costs for these individuals.
In the United States, Medicare plans for seniors are divided into four parts; Medicare Plan A and B and Medicare Plan C and D. Medicare plans A and B refer to Original Medicare plans. These cover:
Medicare Plan A:
- Hospital insurance and medical insurance
- You can select from your own choice of doctors, hospitals, and medical care providers
- Seniors can save money if they have low income
- Helps pay for inpatient hospital care, nursing facilities, hospice care and health care
Medicare Plan B:
- Covers outpatient hospital care
- Helps pay for the doctors
- Helps pay for costs which Medicare Plan A does not cover
- Pays for occupation therapy and physical therapy
Medicare Plan C includes both hospital insurance and medical insurance. Private insurance companies approved by Medicare provide services to individuals under this Medicare plan for seniors.
Medicare Plan C:
- Healthcare organizations, HMOs and PPOs provide services and health insurance plans to Medicare beneficiaries
- Offers additional benefits, such as dental and vision care
- Offers lesser benefits as compared to Medicare Plan A and B
- Limits the patient’s choice of doctors and hospitals (in order to control costs)
Medicare Plan D:
- Provides prescription drug benefits
- People need to pay extra premium every month to cover the costs of prescription drug benefits
- Private insurance companies pay for Medicare Plan D benefits
Most seniors in the United States are covered under the Original Medicare plan once they are eligible. While they have to pay some additional amount for Plans B and D, these amounts are deductibles and coinsurance.
Medicare plans for seniors are extremely important and every senior must have some kind of Medicare plan for their health care.