Medicare is the health insurance program for people age 65 or older, certain people with disabilities who are under 65, and people of any age who have permanent kidney failure.  It provides basic protection against the cost of health care, but it doesn't cover all medical or the cost of most long-term care.

Medicare Part A And Part B
 
Medicare consists of two parts.    
 
Part A (hospital insurance) includes:

• hospitalization

• post hospital skilled nursing facility care

• home health care

• hospice care

• blood

Part A does not cover 100% of these expenses.  A graduated payment by number of days the care is required is applied. You would be responsible for the remainder.  The Federal Employees Health Benefits (FEHB) Plan will cover some of the expenses, but you should ensure that you understand what is and isn't paid by Medicare and/or FEHB, by checking with local Medicare representatives and consulting your FEHB plan brochure or carrier representative. 

Part A has been paid for through Federal Insurance Contributions Act (FICA) taxes on wages while you were/are employed; therefore, there is no premium.  You should sign up as soon as you are eligible if you are not already receiving Social Security benefits. If you are already receiving Social Security benefits before age 65, you are automatically enrolled in Medicare.

Part B (medical insurance) provides the following coverage:

• doctor's services

• ambulance services

• outpatient hospital treatment

• X-rays

You are automatically eligible to enroll in Part B when you are eligible for Part A.  However, Part B has a monthly premium which changes each January.  If you fail to enroll in Part B at your first opportunity, there is a 10% penalty applied for each year following the year in which you become eligible.  However, if you are a federal employee covered by FEHB and continue to work past Medicare eligibility you will not be affected by the 10% increase.

How To Enroll
 
You have from 3 months before your 65th birthday and through the end of the 3rd month following the month in which you reach 65 to sign up for Medicare Part B.  If you do not enroll during this 7-month period, there is a general enrollment period from January 1 through March 31 each year.  Coverage begins the following July.  Don't forget about the penalty for the delay.

Helpful links:

FEHB plan and premium information:  https://www.opm.gov/insure/08/spmt/plansearch.aspx

Medicare plan and premium information:  http://www.medicare.gov.  

Source: USCG