Medicare Basics

President Lyndon B. Johnson, July 30, 1965:

"(T)hrough this new law, …every citizen will be able, in his productive years when he is earning, to insure himself against the ravages of illness in his old age."

A Little History

Medicare and Medicaid were signed into law in 1965 by President Johnson in an effort to provide health insurance coverage and financial security to older Americans. Medicare was later expanded to include younger, disabled people and those with End Stage Renal Disease (ESRD) or Lou Gehrig's Disease (ALS).

The Medicare Prescription Drug Improvement and Modernization Act of 2003 (MMA) added Medicare Advantage Plans and, in 2006, an optional prescription drug benefit.

The 4 Parts of Medicare: A, B, C, & D

Part A (Hospital Insurance) and Part B (Medical Insurance) make up Original Medicare, which covers much but not all (about 80%) of medically necessary services and supplies. Original Medicare allows you to choose any doctor or hospital in the US that accepts Medicare.

Part C, Medicare Advantage, takes the place of Original Medicare and, often, Part D.

Part D, Medicare Prescription Drug coverage, provides support for medications you use regularly.

How to Cover Remaining Costs

To pay for the costs that Original Medicare does not cover (about 20%), you have a number of options:

Add a Medicare Supplement.
Add a Part D Prescription Drug Plan (PDP)*.
Add a Dental and/or Vision policy.
Choose, instead, to replace Original Medicare with a Part C Medicare Advantage Plan* which may include prescription drugs (Part D) and benefits like gym membership, dental and vision, transportation to and from your doctor appointments, discounts on over-the-counter products, and more.

The choices are yours. I can help you understand all of the options available to you and the best fit your unique health needs and budget. Click the LEARN MORE button to the right to get started.

LEARN MORE

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