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Original or Traditional Medicare? Medicare is health insurance for people age 65 or older, under age 65 with certain disabilities, and any age with End-Stage Renal Disease (ESRD). Traditional Medicare consists of Medicare Part A or Hospital Insurance and Medicare Part B or Medical Insurance. Medicare Part A (Hospital Insurance) Most people do not have to pay a premium for Part A. Part A helps pay for care in hospitals as an inpatient, critical access hospitals, skilled nursing facilities, hospice care, and some home health care. If you get benefits from Social Security or the RRB, you automatically get Part A starting the first day of the month you turn 65. If you are under age 65 and disabled, you automatically get Part A after you get disability benefits from Social Security or certain disability benefits from the RRB for 24 months. You will get your Medicare card in the mail 3 months before your 65th birthday or your 25th month of disability. Medicare Part B (Medical Insurance) Part B covers Medically-necessary services or supplies that are needed for the diagnosis or treatment of your medical condition and meet accepted standards of medical practice. It also covers some preventative services that help prevent illness or detect illness at an early stage, when treatment is most likely to work best. For example, pap tests, flu shots, and prostate cancer exams. Most people pay the Medicare Part B premium $96.40 per month in 2009. This amount will change January 1, 2010. In some cases, this amount may be higher if you didn’t choose Part B when you first became eligible at age 65. The cost of Part B may go up 10% for each 12-month period that you could have had Part B but did not sign up for it, except in special cases. You will have to pay this extra 10% as long as you have Medicare Part B. Your Part B premium may be higher if your income is above a certain level. Enrolling in Part B is your choice. You can sign up for Part B anytime during a 7 month period that begins 3 months before you turn 65. |