medicare

[4/26/18]   6 key Medicare questions

Learn about Medicare eligibility, choices, costs, and when and how to sign up.

[5/13/13] While some people may have access to employer‐provided retiree health care coverage, the government's Medicare health insurance program is still the primary source of health coverage for American retirees. Most automatically qualify for basic Medicare hospital insurance (known as Part A) as soon as they reach age 65. This coverage costs nothing if you or your spouse paid Medicare taxes during your working years.

On the other hand, Medicare medical insurance (known as Part B), which covers doctors' services, outpatient hospital care, and some other medical services such as physical and occupational therapy and some home health care, is not free. You pay a monthly premium for Part B, and there's no annual limit on your out‐of‐pocket expenses as there is with many private insurance policies.

Medicare Advantage plans combine Medicare Parts A and B and supplemental coverage in a single policy. They are privately managed and can offer lower premiums or better benefits than a traditional Medicare setup where each part is treated separately. But these plans also can limit you to using only network providers.

Prescription drug costs have also gone up; although it is only 10% of total health expenditures, spending on prescription drugs has risen 114% from 2000 to 2010.⁴ To cover prescription drugs in retirement, you also can purchase Medicare Part D prescription coverage to add to Part A, Part B, and your Medigap coverage, or as part of a Medicare Advantage plan.

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Frequently asked questions.