Medicare is a federal health insurance program designed primarily for people aged 65 and older, though it also covers certain younger individuals with disabilities and those with End-Stage Renal Disease. The program is divided into four main parts: Part A (Hospital Insurance), which covers inpatient hospital stays, care in a skilled nursing facility, hospice care, and some home health care; Part B (Medical Insurance), which covers outpatient care, preventive services, ambulance services, and medical equipment; Part C (Medicare Advantage), which allows beneficiaries to receive their Medicare benefits through private health plans that often include additional services; and Part D (Prescription Drug Coverage), which helps cover the cost of prescription medications.

Enrollment in Medicare is typically automatic for those receiving Social Security benefits, while others may need to sign up during designated enrollment periods to avoid penalties. Each part of Medicare has its own costs, including premiums, deductibles, and coinsurance, which can add up significantly depending on the services needed. Additionally, while Medicare covers a wide range of healthcare services, it does not cover everything, such as long-term care, dental, vision, and hearing services. Therefore, beneficiaries often consider supplemental insurance options, like Medigap or Medicare Advantage plans, to help cover these gaps and manage out-of-pocket expenses more effectively. Understanding the basics of Medicare, including its parts, coverage, and costs, is essential for making informed healthcare decisions and planning for future medical needs.