Medicare is a sometimes confusing subject. My goal in this section is to clarify it and make you aware of your rights and responsibilities. Let's start with the basics:
Medicare is the federal health insurance program for people who are 65 or older, certain younger people with disabilities, and people with End-Stage Renal Disease (permanent kidney failure requiring dialysis or a transplant, sometimes called ESRD). There are 4 different parts:
Part A covers inpatient hospital stays, care in a skilled nursing facility, hospice care, and some home health care. If you've paid taxes into social security, this costs nothing.
Part B covers certain doctors' services, outpatient care, medical supplies, and preventive services. In 2021, the premium for most people is $148.50¹ a month. For high earners, pricing information can be found here.
Part C, also known as Medicare Advantage, is a type of Medicare health plan offered by a private company that contracts with Medicare to provide you with all your Part A and Part B benefits.
Part D is prescription drug coverage.
Since Parts A and B do not cover costs completely, most people choose a secondary plan. In the next 2 sections, I explain what those choices are and what they cover.
Very important note 1: if you're insured under a group plan through your employer and are only enrolled in Part A and not Part B, you have 8 months² from the time you lose your coverage to sign up for Part B without incurring penalties. The application for part B and the form you need to bring to your employer can be found here and here.
¹ 2021 Medicare and You page 32. Publication date Dec. 1, 2020
² 2021 Medicare and You page 26.