What is Basic Medicare?

Medicare (Original Medicare) is a Federal Health Insurance program that covers most people 65 years old and over and some people younger than 65 with certain disabilities or health conditions.

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Typically, Medicare eligibility is reached at the age of 65 years provided that you or your spouse worked for at least 10 years in Medicare-covered employment and you are a citizen or permanent resident of the United States. If you are not yet 65, you may qualify for coverage if you have certain disabilities or if you are eligible for a low income subsidy. In any case Medicare will cover up to 80% of Part A and Part B expenses and you will be responsible to cover the remaining balance.

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Medicare is divided into FOUR parts. These parts are:

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Part A – Hospital insurance

Covers most in-patient hospital care, some in-patient skilled nursing facility care, some home health care, and hospice care. There is no monthly premium for people who have 40 or more quarters of Social Security credits (about 10 years of full-time work with four quarters per year) and who are eligible for Social Security or Railroad Retirement benefits.

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Part B – Outpatient medical services

Covers a portion of the Medicare approved costs for out-patient medical services such as doctors’ services, out-patient hospital care, laboratory tests, out-patient physical and speech therapy, some home health care, ambulance services, and some medical equipment and supplies. Monthly premium is $134.00 for beneficiaries with individual annual incomes of $85,000 or less.

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Part C – Medicare Advantage plans

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Part D – Prescription Drug plans

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