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When the Medicare program was passed in 1965 it had two parts to it. There was what we’ll call “Part A”: hospital insurance coverage. And then there was “Part B”: medical insurance coverage. Late a “Part C” and a “Part D” were added to cover further 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.

Part B is an optional benefit of Medicare. Pat B includes many medical services and medical providers not covered by Part A. This means that lab tests, visits to the doctor, particular outpatient procedures, flu vaccinations and more are covered by Part B of Medicare insurance.

Part A is completely free, however, Part B requires a monthly premium. When you are notified that you can have Medicare insurance just before you turn 65, you must choose whether or not you would like Part B coverage. You must pay $88.50 for Part B premiums as of 2006.

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 1, 2006, Part D Medicare insurance was activated. Those already eligible for Parts A and B were therefore already eligible to participate in the new Part D prescription drug plan. The Medicare insurance benefit of Part D allowed members to subscribe to one of many private insurance prescription drug plans.

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.