Medicare Part B is a federal program available to Americans over 65. For a little history lesson, Medicare was signed into law on July 30, 1965 by President Lyndon Johnson – an initiative begun by President Harry Truman, who had this to say on the day of the signing: “Mr. President, I am glad to have lived this long and to witness today the signing of the Medicare bill which puts this Nation right where it needs to be, to be right.”

Funded by payroll deductions and premiums, it covers essential medical services, like doctor visits, outpatient care, and certain home medical products (like CPAP and diabetic supplies). This program typically follows a simple structure:

Deductible: Medicare recipients pay a yearly deductible (currently around $240).
80/20 Cost Sharing: Medicare Part B pays 80% of the approved fee schedule for services, leaving beneficiaries responsible for the remaining 20%.
Supplemental Coverage Options: Many Medicare recipients purchase additional “Medigap” insurance (from providers like AARP, BCBS, or others) to cover the 20% coinsurance and potentially the deductible.
Medicare Part B offers stable coverage and is directly tied to federal funding, making it straightforward and accessible. However, there are alternatives, namely Medicare Advantage plans, which differ significantly in structure and service delivery.