What does Medicare Part A cover?
Medicare Part A helps cover inpatient care in hospitals, including critical access hospitals, skilled nursing facilities (Medicare doesn't pay for long-term or custodial care), hospice care, and some home health care.

What does Medicare Part B cover?
Medicare part B helps cover most doctors' services, outpatient care, medically necessary services and supplies, outpatient mental health care, clinical lab services, some home care and supplies, blood, and preventive services (such as cancer screenings and flu shots).

How do I pay for Medicare Part A and/or Part B?
You usually don't have to pay a monthly fee, called a premium, for Medicare Part A benefits. This is because you or your spouse paid Medicare taxes while working. If you or your spouse didn't pay Medicare taxes, you may be able to buy Medicare part A.

Most people must pay for Medicare Part B through a monthly premium ($78.20 in 2005). To make sure you don't pay higher premiums, it's important to sign up for Part B as soon as you are eligible. The cost of Part B may go up 10% for each full 12-month period that you could have had Part B but didn't sign up for it (except in special cases).