Medicare insures seniors.
Medicare was signed into law by President Lyndon Johnson on July 30, 1965. It was the first comprehensive health insurance program passed by Congress to include all Americans over 65. While there have been several additions to Medicare since that time, including the recent prescription drug plan, the two basic components of Medicare are parts A and B.
Medicare Part A
Medicare Part A is normally considered to be the "Original Medicare" because it is the only component that was part of the original law signed in 1965. Under Part A, most seniors over 65, regardless of income, are enrolled automatically in the plan. This gives them the right to hospital care, critical urgent care, skilled nursing care and some forms of home care. Essentially, Medicare Part A pays for any emergency medical problems that seniors encounter as they age.
What Part A Does Not Cover
Medicare Part A does not cover routine care such as doctor's visits, routine screening such as blood tests and X-rays, and most other outpatient medical services. In addition, Part A is not automatic for those who have not paid sufficient amounts into Social Security over their working years. In these cases, seniors can pay into Medicare Part A, and if they cannot afford to do so, they can receive financial help from the government to get covered.
Medicare Part B
Given that the Original Medicare, Part A, did not cover most routine care, Congress created Part B. Part B is basically a government-sponsored insurance program that is similar to the private insurance Americans over 65 may be familiar with. For a monthly premium, seniors can be covered for things such as regular screenings, doctor's visits and many forms of home care. The premium is currently $96.40 through 2010 and will rise for most seniors to $110.50 after 2010. Also, those whose incomes are above $85,000 (single) or $170,000 (married) per year may have to pay higher premiums.
Supplemental Medicare Plans
Many private health insurance companies have increased coverage over the years to include such things as prescription drugs, vision and dental. Private companies have therefore offered what is generally termed "Medigap." These plans are all standardized in sections A-L. Each letter deals with a specific coverage, and the designations are the same for all companies. The differences are in terms of price and what letters are offered, allowing seniors to choose the plan that fits within their lifestyle.
Prescription Drug Plan
In 2006, President George W. Bush signed the prescription drug plan into law. This allows seniors to extend their coverage to prescription drugs and have private companies actually provide the service.
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