*Dependent on the plan and participating health care providers -- coverage may vary
Medicare is a federal health insurance program for people age 65 and older. Exceptions can be made for younger people with a permanent disability and for some chronic conditions. There are four main parts to Medicare, according to Darshak Sanghavi, M.D., global chief medical officer at Babylon, a digital healthcare company:
"Americans pay for their Medicare Part A through payroll taxes," says Cheri Brown, an independent Medicare insurance agent in San Francisco. "Part B and D, however, are subsidized by the federal government with beneficiaries who contribute on a sliding scale."
This means that while you're working, Medicare deductions are taken from your paychecks to pay for Medicare Part A, which covers hospitalizations. Medicare Part B is paid by the federal government, with most people paying a premium of $185 in 2025 for physician services, medications, medical equipment and tests, according to Brown.
"If someone earns a very low income, they may qualify for programs that will pay the Part B premium," Brown adds. People who make an income starting at $106,000 as an individual and couples who file jointly with an income $212,000 or more their part B premium is $185 per month as of 2025