Medicare, the nation's largest health insurance program, covers nearly 48 million Americans. It is a health insurance program for people 65 years of age and older, some disabled people under 65 years of age, and people with End-Stage Renal Disease (permanent kidney failure treated with dialysis or a transplant).

Medicare consists of two programs: Part A (Hospital Insurance) and Part B (Supplemental Medical Insurance). Most people do not have to pay for coverage under Part A; Part B coverage is paid for by a monthly premium.

Part A (Hospital Insurance) helps pay for: inpatient hospital care; critical access hospitals (small facilities that give limited outpatient and inpatient services to people in rural areas); skilled nursing facilities; hospice care; and some home health care.

Most people get Part A automatically when they turn age 65. They do not have to pay a monthly premium for Part A because they, or a spouse, paid Medicare taxes while they were working.


Part B (Medical Insurance) helps pay for: physicians' and surgeons' services; outpatient hospital care (such as an emergency room or same-day surgery clinic); some home health care not covered by Part A; laboratory tests, x-rays and other diagnostic services; most physical and occupational therapy and speech pathology services; radiation therapy, kidney dialysis, and certain organ transplants; some durable medical equipment; and certain drugs.

In 2013, the Medicare Part B premium ranges from $104.90-335.70 per month, depending upon your income. In some cases this amount may be higher if you did not choose Part B when you first became eligible at age 65. The cost of Part B may go up 10% for each 12-month period that you could have had Part B but did not sign up for it, except in special cases. You will have to pay this extra 10% for the rest of your life.


Eligibility: Individuals are generally eligible for Medicare if they or their spouse worked for at least 10 years in Medicare-covered employment, and they are 65 years old and a citizen or permanent resident of the United States. A person might also qualify for coverage if they are a younger person with a disability or with End-Stage Renal Disease (permanent kidney failure requiring dialysis or transplant).


You can also find information on Medicare in an AARP magazine special report, Understanding Medicare: What You Need to Know (.pdf).