What Does Medicare Cover?

If you're new to Medicare, you may find the program confusing. Getting a grip on the different deadlines, parts, co-pays, deductibles, and other odds and ends may seem next to impossible. WebMD is here to help you understand the basics of Medicare.

Most people age 65 or older count on Medicare for their health care coverage. Some people under 65 who have a disability, Lou Gehrig's disease, or advanced kidney failure are also entitled to it. 

Understanding Medicare

Medicare is broken into several parts that cover different types of care.

• Medicare Part A generally covers inpatient services -- medical care when you're checked into a hospital or are recovering in a nursing facility.  It also covers some short-term home health care, along with hospice care.  Most people are enrolled automatically in Part A when they reach age 65 and get it for free.
  
  Together, Part A and Part B are called "Original Medicare." 
  
  
• Medicare Part B covers outpatient services -- like doctor's visits and treatment at a hospital where you don't check in -- along with lab tests and other medical care.  Although enrollment in Part B is often automatic, it isn't free. You'll need to pay a monthly fee as well as an annual deductible. 
• Medicare Advantage plans are Medicare health plans that are managed by private insurance companies.  All Medicare Advantage plans provide health-care coverage. Some also offer prescription drug coverage and dental or vision care. These plans may cost more and restrict the doctors you can see. 
• Medicare Prescription Drug Plans (Medicare Part D) are optional plans that provide prescription drug coverage. The plans themselves are run by private insurance companies.  So depending on your plan, the costs and drugs covered will vary.  You'll need to carefully choose the plan that makes the most sense for you. If you can't afford a Prescription Drug Plan, financial help may be available.
  
• Medicaid is not part of Medicare.  It's a separate government program that helps people with low incomes pay for medical care.  
• Medigap policies are not part of Medicare. These are private insurance plans that pay for health expenses -- treatments, supplements, or co-payments -- that Medicare doesn't cover. Medigap policies are run by outside insurance companies and they cost extra.  The exact coverage and costs depend on the plan you choose. 

For more help understanding common Medicare terms, see WebMD's Medicare Glossary.