About Medicare Supplement Plans

What is Medicare?

Chances are, you’re familiar with the term Medicare, but still have questions about what Medicare does, what it doesn’t do, when you need it, and whether you’re eligible.  Here is a basic explanation of Medicare and the coverage it provides.

Medicare is health insurance sponsored by the federal government, also referred to as a social insurance program.  The program was established in 1965 by a law signed by President Lyndon B. Johnson, who named former President Harry S. Truman and Truman’s wife Bess as the first Medicare beneficiaries.  While Medicare does provide some funding for things outside of medical coverage, such as for residency training programs, the program is primarily designed to provide basic health coverage to eligible beneficiaries.

Eligibility

Medicare provides health insurance to the elderly (65 years and older), as well as those younger than 65 with disabilities or special criteria. People with disabilities are required to have been receiving Social Security Disability Insurance Benefits for two years to qualify for Medicare.  People may also qualify for Medicare coverage if they are suffering from end stage renal disease. To be eligible for Medicare you must have been an American Citizen for the past five years.

Medicare was created with the intention of making health care insurance affordable to the elderly who generally require more health care when they are retired and making less income. Medicare is currently the largest insurance provider in the United States with coverage for over 40 million people and is expected to greatly increase over the next couple decades as the elderly population grows.

Medicare Benefits

What Medicare offers on the most basic level is short term care at hospitals, skilled nursing homes, hospice care and at home health care. At the most basic level of Medicare there is not a premium, but not all expenses are covered. For this reason there are several additional parts of Medicare that offer further coverage with higher premiums. Despite the multiple parts of Medicare, additional coverage is still often required, which leads to the need for private Medicare Supplements, or “Medigap” insurance.

Medicare vs. Medicaid

Medicare is not linked to Social Security, nor is it the same as Medicaid. One of the differences between Social Security and Medicare is that Social Security can be available before you are 65. Medicare is a federally funded program while Medicaid also receives funds at the state government level. Because Medicare and Medicaid are different programs, some people may be eligible for both programs.

If you are looking for Medicare supplement insurance, or have questions, fill out the quote form for more information, including quotes designed to save you money and provide you with the peace of mind that comes with the right insurance coverage.