Medicare is the federal health insurance program for people who are age 65 or older, certain younger people with disabilities and people with End-Stage Renal Disease, permanent kidney failure requiring dialysis or a transplant. It’s a fee-for-service health care program in which the government pays health care providers directly for services that fall under Parts A and B, also known as Original Medicare.

It is divided into four categories:

Medicare Part A (Hospital Insurance): Helps cover inpatient care in hospitals, skilled nursing facility care, hospice care and home health care.

Medicare Part B (Medical Insurance): Helps cover services from doctors and other health care providers. It covers outpatient services, home health care, durable medical equipment (like wheelchairs, walkers, hospital beds) and other equipment. It also covers many preventive services like screenings, shots or vaccines, plus yearly “Wellness” visits. The standard Part B premium for 2023 is $164.90 per month.

Medicare Part C (Medicare Advantage): Medicare Advantage is a Medicare approved plan from a private company that offers an alternative to Original Medicare for your health and drug coverage. Medicare Advantage plans bundle Part A (Hospital), Part B(Medical) and usually Part D (Prescription Drugs).

Medicare Part D(Prescription Drug Coverage): Stand alone prescription drug coverage that is offered by private companies approved by Medicare.