Medicare

Medicare is a federal health insurance program for:

• People age 65 or older;



• Some people with disabilities under age 65; and



• People with End-Stage Renal Disease (permanent kidney failure requiring dialysis or a kidney transplant).

Medicare has two parts - Part A and Part B. Part A covers inpatient hospital and nursing facility care. Part B helps cover doctors' services, outpatient hospital care, and other medical services such as physical therapy, occupational therapy, and some home health care services.

Medicare Part A is provided at no cost to most people because they (or a spouse) paid Medicare taxes while they were working. Medicare Part B requires that recipients pay a monthly premium, which may change on January 1st of each year.

For 2004, the monthly premium for Part B is $66.60. For some people, this amount may be higher if they did not sign up for Part B when they first became eligible. The cost of Part B may go up 10% for every 12-month period a person was eligible but did not sign up for the coverage. However, there are certain situations in which the increase may be "waived." For more information, contact Social Security by calling toll-free 1-800-772-1213.

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