What is Medicare?

Medicare has been around since 1965. If you have worked and paid Medicare taxes for at least 10 years (40 quarters), you generally qualify for Medicare at 65 without paying a premium for hospital coverage. Spouses can also qualify based on a partner's work record.The program is divided into parts. Part A covers inpatient hospital care, skilled nursing facility stays, hospice, and some home health services. Part B covers doctor visits, outpatient care, preventive services, and medical equipment. Together, Parts A and B are called Original Medicare.Original Medicare covers a lot, but it does not cover everything. There are deductibles, meaning amounts you pay before coverage kicks in, and coinsurance, meaning a percentage of costs you share after that. Prescription drugs are not included in Original Medicare on their own. There is also no cap on how much you could spend in a year under Original Medicare alone, which leads many people to add either a Medicare Advantage plan or a Medigap policy for additional protection.Most people enroll around their 65th birthday. Missing your enrollment window without having other qualifying coverage can lead to permanent premium penalties, so timing matters. Social Security handles enrollment for many people automatically, but not everyone, so it is worth knowing when and how to sign up.