What you need to know
Medicare was signed into law by President Lyndon Johnson, with the enactment of the Social Security Amendments of 1965, which also provided for the creation of Medicaid. In the half-century since its inception, Medicare has helped bring the share of seniors with health insurance coverage from around 60% to close to 100%.
Definition
Medicare is the federal government program tasked with administering healthcare to US residents over age 65, or who have other qualifying health conditions. The Medicare program consists of four parts:
Part A covers inpatient hospital stays, care in skilled nursing facilities and some home care. Coverage is automatic.
Part B covers doctor visits, therapist services and outpatient care. Beneficiaries must sign up for coverage and pay monthly premiums.
Part C, also known as Medicare Advantage, is an alternative to traditional Medicare coverage, offered by private insurers.
Part D is Medicare’s prescription drug benefit program.
Supplemental, or Medigap insurance, provides additional coverage to the above.
