What Is Medicare & What Does It Cover?

Medicare is a healthcare program meant for Americans who are 65 years of age or older. Medicare also provides coverage to some disabled people who are under the age of 65 years. The coverage it offers plays a significant role in helping people pay for their medical costs as they age. But keep in mind that Medicare doesn’t pay for everything. As one approaches 65, they’ll need to learn what exactly Medicare coverage is and how to deal with the coverage gaps.

How to Enroll for Medicare

People who are receiving their Social Security benefits at the time of turning 65 will be automatically enrolled in Medicare Part A, which provides coverage for hospital-related expenses, and also Part B, which covers one’s doctor visits. Those who need Medicare Part D coverage, which covers expenses incurred to purchase prescription drugs, will need to enroll themselves — this is not automatic.

People who are not receiving their Social Security benefits will need to sign up via the Social Security Administration’s website. This can be done during the seven-month window around an individual’s 65th birthday (three months before the month that one turns 65, the birthday month, and three months after one’s birthday month).

People who want Medicare Supplemental Insurance (also called Medigap) will need to do so during the six-month enrollment period, which starts the same month that one turns 65 and is enrolled in Part B. The private insurance companies that offer Medigap plans are required to provide them to people who sign up during this period. If one misses this window, there is no guarantee that the company will still sell them a Medigap plan.

Coverage

Medicare Part A: Medicare Part a Offers Coverage for Inpatient Care at A Skilled Nursing Facility or A Hospital.

Medicare Part B: Part B covers medically necessary supplies and services as well as doctor visits — this includes preventive healthcare services, ambulance services, etc.

Medicare Part C: Part C, also known as Medicare Advantage, is offered by private insurers and offers all the benefits of Parts A and B and sometimes that of Part D as well. They may also cover hearing, dental, and vision care.

Medicare Part D: Medicare Part D covers the cost of prescription drugs. These plans are offered by private insurance companies.