About Medicare Health Insurance Plans

Medicare is health insurance partially funded by the federal government. It was established and signed into law in 1965 by President Lyndon B. Johnson as an extension of Social Security.

Health Care

• Medicare provides for health care costs for individuals age 65 and older. It is also available for certain individuals under 65 years of age with kidney failure and disabilities. More than 43 million Americans receive Medicare benefits.

Part A

• Medicare Part A is hospitalization insurance. An individual must have 40 quarters of work credits to qualify for premium free Medicare Part A. A work credit is equal to three months of being gainfully employed.

Part B

• Medicare Part B is medical insurance. Enrollees must pay a premium for Part B coverage. The premium is based on the individual's income tax returns. The premium is usually deducted from the beneficiary's Social Security retirement benefits.

Part C

• Medicare Part C, also known as Medicare Advantage, works like a managed care plan similar to a Health Maintenance Organization (HMO). It combines Medicare Parts A, B and D. The amount of the premium for Part C is based on the plan chosen.

Part D

• Medicare Part D covers prescription costs. The monthly premium costs depend on the plan chose.