Basic Medicare coverage
Basic Medicare coverage is made up of two separate parts, which are as follows.
Medicare Part A (Hospital Insurance)
This part covers hospital stays as well as inpatient rehabilitation and skilled nursing facility, hospice, and home health care services. Retirees who have paid into Social Security during their working years generally do not have to pay for Part A coverage. Those not eligible for this free coverage can buy it under certain conditions.
Medicare Part B (Medical Insurance)
This part covers eligible physician services, outpatient hospital care, some preventive services and durable medical equipment. You must have Part A coverage to receive Part B coverage. Part B has a monthly premium ($96.40 per month for most participants in 2010) and a standard deductible ($155 in 2010). You pay 20% of the Medicare-approved amount for services after you meet the deductible.
Source: www.medicare.gov
