Medicare is a federally funded health insurance plan for U.S. citizens and legal residents who are at least 65 years of age or older or who have a qualifying illness or disability. Medicare is broken into separate parts with different types of coverage. There are four main parts: Medicare Part A, B, C and D.

Medicare, Part A: Covers inpatient hospital care, skilled nursing facility care, nursing home care, hospice care and home health care.

Medicare, Part B: Pays for medical necessities like outpatient care, occupational therapy, medical equipment and testing. It also covers some preventative services like physical exams and cancer screenings.

Medicare, Part C: Also referred to as Medicare Advantage, Medicare, Part C helps pay for prescription medicines, vision and dental insurance and mental health services.

Medicare, Part D: Part D provides access to an outside insurance company’s network of pharmacies in exchange for a monthly premium.

Most qualified individuals are automatically enrolled in Medicare, Part A and Part B, but some must manually enroll through the Social Security Administration. Individuals who have paid enough in Social Security and payroll tax may not have to pay the premium for Medicare, Part A; however, if you don’t have enough tax credits built up, you may have to pay out of pocket. Medicare Part B, C and D require premiums that depend on the level of coverage you select.

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