What is medicare?

Medicare is a federal health insurance program established to provide medical coverage for individuals age 65 and older, as well as certain younger individuals with disabilities or specific medical conditions. It is administered by the Centers for Medicare & Medicaid Services (CMS) and funded primarily through payroll taxes, premiums, and federal revenues.

Medicare was signed into law on July 30, 1965, by President Lyndon B. Johnson as part of the Social Security Amendments of 1965. At the signing ceremony, the first two Medicare cards were issued to President Harry S. Truman and First Lady Bess Truman, honoring President Truman's earlier advocacy for national health insurance.

The program originally provided health insurance only to people 65 and older, regardless of income or medical history. Over the decades, Medicare has expanded to include younger individuals with:

• Certain disabilities
   
• End-Stage Renal Disease (ESRD)
   
• Amyotrophic Lateral Sclerosis (ALS)
   

   What Are the Parts of Medicare?

Medicare is divided into four parts, each offering different types of coverage:

Covers inpatient hospital stays, skilled nursing facility care, hospice, and limited home health services.

• Most people pay no monthly premium for Part A if they paid Medicare taxes while working.
   
• In 2025, the Part A deductible is $1,676 per benefit period.
   

Covers outpatient care, doctor visits, preventive services, durable medical equipment, and some home health care.

• Most beneficiaries pay a monthly premium (standard amount in 2025 is $174.70).
   
• Includes an annual deductible and 20% coinsurance for most services.
   

An alternative to Original Medicare, these plans are offered by private insurance companies approved by Medicare. They must cover everything Original Medicare covers and may include:

• Prescription drug coverage
   
• Vision, dental, and hearing benefits
   
• Wellness and fitness programs
   

You must have Parts A and B to enroll in a Medicare Advantage Plan.

Helps cover the cost of prescription drugs, including many recommended vaccines. Plans are offered by private insurers and can be added to Original Medicare or included in some Medicare Advantage Plans.

Costs vary by plan and may include:

• Monthly premium
   
• Annual deductible
   
• Copayments or coinsurance
   

You’re generally eligible for Medicare if:

• You are 65 or older
   
• You are a U.S. citizen or permanent legal resident for at least 5 years
   
• You or your spouse paid Medicare taxes for at least 10 years
   

  You may also qualify under age 65 if:

• You’ve received Social Security Disability Insurance (SSDI) for 24 months
   
• You have ESRD (permanent kidney failure requiring dialysis or transplant)
   
• You have ALS (Lou Gehrig’s disease)
   

Timing matters. These are the key Medicare enrollment periods:

• Initial Enrollment Period (IEP): Begins 3 months before your 65th birthday and ends 3 months after.
   
• General Enrollment Period (GEP): January 1 – March 31 (coverage starts July 1)
   
• Annual Enrollment Period (AEP): October 15 – December 7 (for making coverage changes)
   
• Special Enrollment Periods (SEPs): For life events like losing employer coverage
   

Medicare plays a critical role in retirement planning, helping Americans access health care services that would otherwise be unaffordable. With rising health costs, having access to reliable coverage ensures that seniors and eligible individuals can live longer, healthier, and more financially stable lives.

• Medicare.gov – Official Website
   
• Social Security Administration
   
• State Health Insurance Assistance Programs (SHIP)