Original Fee-for-Service Medicare is an indemnity health insurance plan with a schedule of benefits with all the features of a regular indemnity insurance plan including freedom of choice, deductibles, and coinsurance. To learn more about Indemnity Health insurance, see Types Of Health Insurance Policies.

Medicare benefits are administered by private companies.

Medicare is divided into two parts:

• Part A -- Hospital - The federal government pays Part A premiums for most Medicare beneficiaries. Part A includes hospice (end-of-life) care.
• Part B -- Medical - Part B is considered voluntary in that each beneficiary pays for it. In 2007, the cost for Part B coverage depends on your income. (To learn more, see: Original Fee-For-Service Medicare: Premiums).

In the private insurance world, indemnity policies don't pay more than "Usual and Customary" charges in your area. Medicare refers to the limitation on what it pays as the "Medicare Approved Amount."

Give serious consideration to purchasing Part B coverage -- or a Medicare Advantage Plan. There is assistance available to help pay the costs of Medicare coverage.

When to enroll depends on your circumstances. If you are on Social Security Disability Insurance (SSDI) for 24 months, you will automatically be enrolled in Medicare. You can disenroll to move to Medicare Advantage or for any other reason.

The effective date of enrolling or disenrolling depends on the action and when it occurred.

It is advisable to keep track of your claims.

There are tips for maximizing the use of Medicare.

If you already have health insurance, do the math to determine whether to keep your private coverage and pay for Medicare. As a general matter, for someone with a serious or chronic health condition, financial advisors suggest taking both if you can afford it.

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