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Medicare program: Key features

Medicare is a federal health insurance program for: people 65 years of age or older, certain younger people with disabilities, and people with End-Stage Renal Disease (permanent kidney failure with dialysis or a transplant, sometimes called ESRD). Medicare is made up of two parts: Hospital Insurance (Part A) and Medical Insurance (Part B).

MEDICARE PART A (HOSPITAL INSURANCE) - Hospital insurance that pays for inpatient hospital stays, care in a skilled nursing facility, hospice care and some home health care.

MEDICARE PART B (MEDICAL INSURANCE) - The part of Medicare that covers doctors' services and outpatient hospital care. It also covers other medical services that Part A does not cover, like physical and occupational therapy.

Medicare will pay for many of your health care expenses, but not all of them. In particular, Medicare does not cover most nursing home care, long-term care services in the home, or prescription drugs. There are also special rules on when Medicare pays your bills that apply if you have employer group health insurance coverage through your own job or the employment of a spouse.

Medicare usually operates on a fee-for-service basis. HMOs and similar forms of prepaid health care plans are now available to Medicare enrollees in some locations.

The best source of information on the Medicare program is the Medicare Handbook. This booklet explains how the Medicare program works and what your benefits are. Please visit the website at http://www.medicare.gov/ .