Medicare is a health insurance program for individuals aged 65 and older, as well as for those under 65 with specific disabilities. It also covers people of any age who have end-stage renal disease or ALS. Typically, Plan A covers inpatient care in hospitals, skilled nursing facility care, hospice, and home health services. This coverage is provided at no cost. Plan B, on the other hand, covers necessary medical tests and supplies for diagnosing and treating illnesses, as well as preventive services like annual wellness exams and flu shots. Plan B comes with a premium, and while most pay the standard rate, those with a higher modified adjusted gross income reported on their IRS tax return from two years ago may have to pay more.

Recipients of Plan A and B are eligible for "Medigap" or Supplement plans, which help cover expenses not included in the original Medicare coverage. Many beneficiaries also opt for a Part D prescription drug plan and additional dental and vision plans. It's important to note that Medigap is different from Medicare Advantage, an alternative provided by private insurers.