What Is Medicare?

A federal health insurance program for:

• People 65 years of age or older

• People under age 65 with certain disabilities

• People with End Stage Renal Disease (ESRD

Who Is Eligible for Medicare?

You are eligible if:

• You are 65 years old or you are under age 65 with certain disabilities

• You are a U.S. citizen or permanent resident

• You or your spouse have paid Social Security taxes for at least 10 years

Part A + Part B = Original Medicare

What Is It?

• A fee-for-service plan managed by the Federal Government.

How Does It Work?

• You pay a deductible before Medicare pays its part. You then pay your share (coinsurance or copayment), approximately 20%, for covered services.

• See any doctor or supplier that accepts Medicare.

• May use with Medigap or other coverage like Medicare Part D to help pay costs not covered under Original Medicare.

• Use your red, white and blue Medicare card when you get services.

Your Medicare Card

Part A: Hospital Insurance

What It Covers

Many services related to inpatient hospital stays, skilled nursing facilities, home healthcare and hospice.

What You Pay (hospital stay deductibles for 2009

• $1,068 per benefit period (days 1-60)

• $267 per day (days 61-90)

• $534 per day (days 91-150)

• All costs for each day beyond 150 days (Lifetime reserve days are 60 extra days of coverage you can use in your lifetime. In 2008, you pay $534 per day during these 60 days of coverage.)

Part B: Medical Insurance

What It Covers:

Some of the expenses related to doctor services, lab work and other outpatient services.

What You Pay:

• Part B premium of $96.40 monthly (based on your income; it might be higher if you didn’t sign up for Part B when you first became eligible)

• $135 annual deductible for 2009

• 20% of the Medicare-approved amount for most services after the $135 deductible has been met.

• If a doctor or supplier chooses not to accept assignment, their costs are often higher, which means you would pay more.

Part C: Medicare Advantage

What It Covers

All of your Original Medicare Part A and B benefits, plus additional benefits. Some plans also provide Part D Prescription Drug coverage.

What You Pay

• Monthly plan premiums

• Copayments or coinsurance for services

• Drug costs in coverage gap (although some plans offer coverage through this gap)

Part D: Prescription Drug Insurance

What It Covers

Many outpatient prescription drugs

What You Pay

• Monthly Premium on stand alone only!

• Deductibles, copayments and coinsurance according to the plan’s benefits