Boomerbenefits.com-we speak Medicare is the federal health insurance program for people ages 65 and over, or those who receive Social Security disability payments for two years due to end-stage renal disease (ESRD) or amyotrophic lateral sclerosis (ALS or Lou Gehrig’s Disease). It helps pay for many basic services, including hospital stays, physician services, and prescription drugs.

Medicare has four parts: Part A, Part B, Part C and Part D. Part A covers inpatient hospital and skilled nursing facility (SNF) care, hospice care, and some home health visits. Most people don’t pay a premium for Part A. Part B covers doctor visits, outpatient care, medical supplies and preventive services. Most people pay a monthly premium for Part B. Part C and most Medicare Advantage Plans include drug coverage as well. Part D pays for prescription drug coverage.

Navigating the Medicare Maze: Essential Tips and Insights for a Healthier Future

Insolvency is when available Medicare revenues plus existing balances are projected to fall short of covering total program costs over a certain timeframe, which by law is set at 75 years. Medicare actuaries also give estimates on an infinite horizon, taking into account life expectancy growth and other economic factors.

If you don’t sign up for premium Part A and Part B during your Initial Enrollment Period (IEP) or General Enrollment Period (GEP), you may have to pay a penalty, which is added to the cost of the coverage for as long as you have it. To avoid the penalty, enroll in your Parts A and B during the GEP, which runs from January 1 through March 31 each year.