What Is Medicare Part A?

As you near retirement, you'll likely start thinking about healthcare coverage, including the options for Medicare. With Parts A, B, C and D available, it can be confusing to figure out how Medicare works and which coverage option you need.

Here’s an overview of Medicare Part A to get you started.

Medicare Part A is the hospital coverage you automatically get when you qualify for Medicare. For most people who qualify for Medicare, Part A is a free insurance product with no premiums due. There is also an option to buy Part A coverage for people who don't qualify for the premium-free option.

What Does It Cover?

Medicare Part A primarily covers the costs of inpatient care you receive in a hospital setting. It can also help cover other care settings for a short period of time, including:

• Skilled nursing facilities
• Inpatient care at a nursing home
• Hospice care
• Home health care

Not everything that falls under these categories is covered by Medicare. You have to be admitted to the hospital based on a doctor's orders, and you have to go to a hospital that accepts Medicare.

It also doesn't cover things like private hospital rooms or separate charges for personal care items. Skilled nursing home care is limited to a short time period. You might have to pay a deductible or coinsurance for some services. Your doctor should be able to tell you if something is covered by Medicare Part A.

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Who Qualifies for Medicare Part A?

Anyone 65 or older is eligible for Medicare Part A. If you're younger, you might qualify if you have a disability or end-stage renal disease. To qualify for premium-free Part A coverage, you either have to be receiving or eligible to receive Social Security retirement benefits or Railroad Retirement Board benefits. You can also qualify if you or a spouse previously held a Medicare-covered government job.

People under 65 can get the coverage premium-free if they've received disability benefits from Social Security or the Railroad Retirement Board for 24 months. People with end-stage renal disease who meet certain requirements also qualify for premium-free coverage.

If you can't get free coverage, you can pay either $274 or $499 in monthly premiums, depending on how long you worked and paid Medicare taxes. You can also choose to buy Part B without buying Part A if you don't qualify for premium-free coverage.