Medicare is a federal government program that provides health insurance coverage to those aged 65 or older, as well as persons with certain types of disabilities, including kidney failure and Lou Gehrig's disease. Medicare is comprised of four parts, which are:
- Part A. This is hospital insurance. Coverage is provided for inpatient hospital stays, hospice care, care in a nursing facility, and certain kinds of home health care.
- Part B. This is medical insurance. Coverage is provided for outpatient care, preventive services, medical supplies, and certain kinds of doctor services.
- Part C. This is several types of Medicare Advantage plans. Coverage of Part A and Part B benefits are provided by a private company, which can include a health maintenance organization, preferred provider organizations, private fee-for-service plans, special needs plans, and Medicare medical savings account plans.
- Part D. This is prescription drug insurance. Coverage is provided for prescription drugs if a person is enrolled in certain Medicare plans. The coverage is provided by Medicare-approved insurance companies.