Medicare is a federal health insurance program categorized into Medicare Part A, B, C, and part D plans for understanding health cover for specific services. People who are 65 years or older, suffer from certain disabilities or have End Stage Renal Disease can apply and benefit from Medicare.

Medicare Part A is your hospital insurance which covers specific services like inpatient hospital stays, home health care, hospice care, and skilled care in nursing homes.

Medicare Part C commonly referred to as Medicare Advantage Plans allow cover for costs which are not covered by Part A or B. This health coverage is provided by private party insurance companies that have contracts with Medicare. Medicare Part D is prescription drug coverage offered by private companies, which have been approved by Medicare.

Understanding the need for Medicare health coverage

• Health care law states that it is mandatory for every person to have qualifying health care coverage for health insurance. Job-based plans, health insurance marketplace plans, individual plans bought in the marketplace, Medicare, Medicaid, Children’s Health Insurance Program, TRICARE, COBRA, and other plans sold through the small business health insurance program are all covered under the term qualifying health insurance.
• Tax penalties are imposed in case this mandatory requirement is not met, on your next federal tax return.
• The percentage of penalty is set at 2.5% of total household income or $695 per adult, whichever is higher. The amount paid per child is half of the penalty set for adults. It should also be noted that inflation will affect the penalty rate significantly, year after year.

Medicare coverage under the age of 30
As explained earlier, Medicare is a health insurance program which has been designed to benefit individuals who are above the age of 65 or currently suffer from disabilities. The following options, however, can enable young adults under the age of 30 to opt for health insurance coverage.

• Parents health insurance coverage
  This is one of the ways in which you can get covered under Medicare to reap full benefits of plans from Part A to D. Your parent’s job-based health insurance plan will in most cases have a clause that covers dependents, provided you have been added to the dependents clause. Enjoy Medicare and health insurance coverage in this manner till you turn 26, after which you will not be eligible to be covered as a dependent. The terms and conditions for both open enrollment and special enrollment (time outside yearly open enrollment) will differ depending on the type of insurance your parents have availed. Enrollment is also possible for plans which have been bought through the health insurance marketplace.
• Job-based plans for young adults over the age of 26
  Your employer may offer viable health insurance coverage options which can be availed after you are no longer eligible to be covered under your parent’s plan. Enrollment time is critical to enjoying uninterrupted benefits under health care as in most cases, dependency coverage will end after your turn 26.
• Individual marketplace health insurance plans
  If you turn 26 mid-year, you will still be covered under your parent’s marketplace plan until the month of December that year. It is a good idea to check out available options in the marketplace to narrow down affordable low premium health insurance coverage.
• Catastrophic health insurance coverage
  For applicants under the age of 30 and those who are eligible for certain exemptions like hardship exemption or affordability exemption, catastrophic health insurance plans can be availed. These plans have low monthly premiums and high deductibles serving as a viable alternative for certain job based and marketplace insurance plans which can be costly. Catastrophic health plans cover essential health benefits, certain preventive services, and 3 primary care visits before you’ve met your deductibles. A deductible is an amount which you pay for medical expenses before the insurance plan covers the cost once your insurance has been cleared.
• Medicaid and CHIP
  Medicaid offers free or low-cost affordable health coverage for low-income individuals. The premium rates are affordable and are decided after taking into account a number of factors like total family income, family situations like pregnancy and having young children, and disability. Some states have expanded Medicaid plans with coverage limits set at $16500 for a single person and $22500 for a married couple with no children. In case you have children, they can benefit from coverage under the Children’s Health Insurance Program (CHIP) even if you don’t qualify for Medicaid.