Medicare

Sooner or later, nearly everyone will be affected by Medicare, the nation's major federal health insurance program. In fact, if you pay taxes, you're already affected by Medicare because a portion of your taxes goes to finance part of the Medicare program. Even though you're paying into the Medicare program during your working years, and will probably rely on its services in the future, you may not be aware of what benefits the program offers--and what it doesn't offer.

Medicare is a federal health insurance program for people age 65 and over and certain disabled persons. It has two parts: Part A which is hospital insurance and Part B which is medical insurance. If you are entitled to receive Social Security benefits in the month your turn age 65, you are automatically enrolled in Medicare and will receive a Medicare card.

Part A pays some of the costs of hospitalization and limited nursing-home care. Part A is financed by payroll taxes and is generally premium free to retirees.

Part B primarily covers doctor's and physician's fees, most outpatient hospital services, and certain related services. Part B is financed by monthly premiums. In 2005. the monthly premium is $78.20 and is deducted directly from your social security benefits. Premiums are adjusted annually in January.

Some of the benefits covered in full or part by Medicare are:

• Hospital benefits (with deductibles)
• Skilled nursing facility (may be limits on benefits)
• Home health services (intermittent nursing care, physical therapy)
• Physician services and supplies
• Rental of equipment used in the home

Some of the items Not covered by Medicare are:

• Prescription drugs
• Routine physical exams
• Eye exams
• Dental care
• Custodial care

You can learn more about Medicare from the following sources: You can get information and help with your Medicare questions 24 hours a day by calling 1-800-MEDICARE (1-800-633-4227). People who are deaf or hard of hearing may call the toll-free "TTY" number 1-877-486-2048.

U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES
Centers for Medicare & Medicaid Services
7500 Security Boulevard
Baltimore, Maryland 21244-1850
http://www.medicare.gov/