Medicare is a government program that provides health insurance to qualifying Americans. Medicare coverage is separated into two “Parts:”

• Medicare Part A provides hospital coverage
• Medicare Part B provides medical insurance

If you are eligible for Social Security benefits, you will be eligible for Medicare coverage. Most people enter Medicare when they turn 65, but there are three ways you can enter before 65:

• You receive disability income from Social Security or the Railroad Retirement Board for 24 consecutive months
• You’re diagnosed with End Stage Renal Disease (ESRD)
• You’re diagnosed with ALS (Lou Gehrig’s disease)

If you’re still working or have health insurance through a spouse, you may be able to delay taking Part B until you retire or lose your coverage. In this way, you can avoid paying a Premium for Part B before you need to.

Parts A and B make up what is known as Original Medicare. Besides A and B there are two other Parts of Medicare:

• Part C – Medicare Advantage plans
• Part D – Prescription Drug Plans

Medicare Advantage plans are an alternative to Original Medicare. With Part C, you receive all of your Part A and B benefits through a private health insurance company. Many Medicare Advantage plans also provide prescription drug coverage.

Part D Prescription Drug plans are Medicare plans from private insurance companies that cover prescription drugs. In almost all cases, if you enroll in a standalone Prescription Drug Plan, you will remain in Original Medicare.

Another kind of Medicare plan is Medicare Supplement Insurance, also called Medigap. With Medigap, you stay in Original Medicare, but you have supplemental coverage from an insurance company. This supplemental coverage will cover most or all of your out of pocket expenses in Medicare. Medigap plans do not cover prescription drugs, so you will need to add standalone prescription drug coverage if you choose Medicare Supplement Insurance.