What is Medicare?

You may have heard various terms and phrases used to describe Medicare, including people referring to “the Medicare system,” “Original Medicare,” “Medicare Parts A, B, C and D,” “Medicare Advantage,” “Medicare Supplements” and “Medigap Plans.” This is where a lot of the confusion about Medicare starts, because people tend to use all of these terms interchangeably when, in fact, they each have their own meaning.

“Original Medicare” is a health insurance program that is sponsored, owned and managed by the Federal Government. Specifically, the Medicare program falls under the supervision of the Department of Health and Human Services, but is managed by the Centers for Medicare and Medicaid Services (“CMS”).

When you hear that you are eligible to enroll in Medicare when you turn 65, that is a reference to enrolling in Original Medicare, which consists of Parts A and B. Part A covers hospital services, such as inpatient hospital stays, skilled nursing facility and/or hospice care, and some home health care, while Part B covers medical services outside of hospitals and skilled nursing facilities, such as physician services, outpatient care, medical supplies, and preventive services. Original Medicare — Parts A and B — DOES NOT include routine dental, vision, or hearing services, nor does it include prescription drug coverage.

Medicare Part C refers to Medicare Advantage, which is administered by private insurance companies. Medicare Part C includes Part A and B services plus additional benefits, such as routine dental, vision, hearing, or prescription drug coverage — services that Original Medicare does not offer. For more information on Part C / Medicare Advantage, please review “What is Medicare Part C?”

Finally, Medicare Part D provides prescription drug coverage to Medicare-eligible beneficiaries, which helps cover the cost of prescription drugs (including many recommended shots or vaccines). For more information on Part D, please review “What is a Medicare Prescription Drug Plan?”