Social Security and Medicare - How Are They Related?

Social Security and Medicare are entirely different programs but they are related. If you receive Social Security benefits you may automatically qualify for Medicare.

People that get Social Security benefits and meet one of the following criteria will also be covered by Medicare Parts A and B.  If you are over age 65, or have been getting disability benefits for two years, have amyotrophic lateral sclerosis (Lou Gehrig's disease) and receive disability benefits, or if you have permanent kidney failure and receive maintenance dialysis or a kidney transplant.

There are four parts to Medicare: Medicare Part A, Hospital Insurance; Medicare Part B, Medical Insurance; Medicare Part C (Medicare Advantage), which was formerly known as "Medicare + Choice" and Medicare Part D, prescription drug coverage.

Medicare Part A (Hospital Insurance) is paid for by a portion of Social Security tax. It helps pay for inpatient hospital care, skilled nursing care, hospice care and other services.

Medicare Part B (Medical Insurance) is paid for by the monthly premiums of people enrolled and by general funds from the U.S. Treasury. It helps pay for doctors' fees, outpatient hospital visits, and other medical services and supplies that are not covered by Part A.

Medicare Part C (Medicare Advantage) plans allow you to choose to receive all of your health care services through a provider organization. These plans may help lower your costs of receiving medical services, or you may get extra benefits for an additional monthly fee. You must have both Parts A and B to enroll in Part C.

Medicare Part D (Medicare Prescription Drug Plan) is voluntary and the costs are paid for by the monthly premiums of enrollees and Medicare. Unlike Part B in which you are automatically enrolled and must opt out if you do not want it, with Part D you have to opt in by filling out a form and enrolling in an approved plan.