Medicare traditionally consists of two parts: Part A and Part B. The new prescription drug benefit plan, known as “Medicare Part D,” begins in January 2006.

The various parts of Medicare include:

• Part A: Covers inpatient hospital care, home healthcare, and hospice care.
• Part B: Covers physician care, other outpatient hospital services, and drugs provided in the physician’s office.
• Part C: Provides for managed care options (formerly known as Medicare + Choice). Now called “Medicare Advantage,” this part includes items and services covered by Parts A, B, and D.
• Part D: Covers outpatient prescription drugs.

Specific benefits are identified in the Medicare brochure.

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