Medicare Basics
Medicare is a Federal health insurance program for seniors and other individuals with certain medical conditions and disabilities.
It is often confused with Medicaid, a Federal-State health insurance program for people with limited resources.
Medicare was enacted in 1965 and is administered through CMS*.
The Medicare Modernization Act was passed in 2003 to make improvements to the Medicare Program. The main effects were the renaming of Medicare Choice to Medicare Advantage, and adding more benefits, such as prescription drug coverage and physical exams.
More recently, the Healthcare Reform Act, passed in 2010, also had an effect on the way Medicare is utilized.
There are several resources with more in-depth information about Medicare. “Medicare & You.” is published by the Federal government and is given to everyone when they first enroll. It is updated each year and sent to all recipients. ” The booklet “Choosing a Medigap Policy” is published by the National Association of Insurance Commissioners” and gives helpful information on Medicare Supplements.
Although it is mainly intended for individuals ages 65 and over, people under age 65 can also qualify for it, if they have disabilities or End-Stage Renal Disease, which is permanent kidney failure requiring dialysis or transplant.
There are four parts to Medicare
Part C-Medicare Advantage Plans
Part D-Prescription Drug Coverage
These parts will all be explained on other pages.
*CMS stands for Centers for Medicare & Medicaid Services, which is part of the U.S. Department of Health and Human Services. It is the administrator of Medicare.
