Medicare: What It Is, How It Works
Back to Costs
Medicare is a Health Insurance Program for:
- People 65 years of age and older.
- Some disabled people under 65 years of age.
- People with End-Stage Renal Disease (permanent kidney failure treated with dialysis or a transplant).
Medicare has Two Parts:
- Part A (Hospital Insurance) Medicare Part A, is a trust fund used to pay for hospital bills incurred by senior citizens and disabled individuals. It is anticipated that this trust fund will incur a budget shortfall of $90 - $120 billion over the next seven years. Most people do not have to pay for Part A.
- Part B (Medical Insurance) Medicare Part B, is a voluntary program funded through a combination of participant premiums and money from the general revenue fund which pays for doctor's bills and outpatient services. There are no anticipated shortfalls for the Part B fund. Most people pay monthly for Part B.
Choices in How You Get Your Health Care:
- With the Original Medicare Plan, available everywhere in the United States, you may go to any doctor, specialist, or hospital that accepts Medicare. You pay your share, and Medicare pays its share. Some things, like prescription drugs are not covered.
- With Medicare Managed Care Plans,
which are not as widely available, you can only go to doctors, specialists, or hospitals on the plan's list. Some of these plans cover extras, like prescription drugs and your costs may be lower than in the Original Medicare Plan.
While you do not have to pay a premium for Part A if you meet one of those conditions, you must pay for Part B if you want it. The Part B monthly premium in 2000 is $45.50. It is deducted from your Social Security, Railroad Retirement, or Civil Service Retirement check.
If you have questions about your eligibility for Medicare Part A or Part B, or if you want to apply for Medicare, call the Social Security Administration. The toll-free
telephone number is: 1-800-772-1213. The TTY-TDD number for the hearing and speech
impaired is 1-800-325-0778. You can also get information about buying Part A as well as
part B if you do not qualify for premium-free part A.
Visit the Medicare site for more information.
|
