The original Medicare benefit program, passed in 1965, was comprised of two parts. Part A contained the hospital part of the Medicare insurance coverage. Part B, specified the medical part of the Medicare insurance coverage. Parts C and D were later added to address additional health concerns.

Medicare’s Part A will cover a hospital stay of at least 72 hours, this is measured by the time of hospital admission and the time of release. Part A will also pay for a stay in a nursing home (as long as it is related to the aforementioned hospital stay) as long as there are skilled nursing personnel present. Part A of Medicare is offered for free, paid for by periodic payroll tax deductions during the patient’s working career.

Medicare insurance Part B is optional medical coverage. This Medicare insurance pays for some of the medical providers and services not reimbursed under Part A. Part B Medicare insurance can include lab tests, x-rays, doctor visits, certain outpatient procedures, flu vaccinations, and more.

Unlike Part A, Part B requires a monthly payment. At age 65 an individual is notified of their eligibility for Medicare, it is at this time they can decide whether or not to enroll in and pay for Part B. In 2006 the monthly premium for Part B was set at $88.50.

Part C Medicare insurance gave Medicare members the option to receive medical care through private insurance plans in beginning in 1997. The private plans replaced Part A/B Medicare insurance coverage. In 2003, the private plan changed and they were called Medicare Advantage (MA) Medicare insurance plans.

On January 1st, 2006 “Part D” of Medicare insurance was added. Individuals who were already eligible for Parts A and B were automatically eligible to participation in Part D, which is a prescription drug plan. With Part D Medicare was able to offer members the option of many private insurance prescription drug programs.

Part D Medicare insurance allowed members to pay less for their prescriptions. Like Part B, Part D Medicare insurance required the member to pay a monthly premium. Unfortunately, each of the private insurance prescription drug plans had varying restrictions and caused a great deal of confusion among those trying to choose a plan.

Some government agencies predict that the Medicare insurance program may run out of money around 2018. It seems that workers are retiring and using Medicare insurance faster than current workers are paying into the Medicare insurance bank account.

Just in 2005, Medicare was providing benefits to around 42.5 million people. Thanks to the Baby Boomers, Medicare is estimated to be providing coverage to at least 77 million people by 2031.