Plain-English definitions for the terms you'll encounter on your financial journey.
The status of an individual who qualifies for benefits from both the Medicare and Medicaid programs at the same time.
FICA stands for Federal Insurance Contributions Act, which is the tax taken out of your paycheck to fund Social Security and Medicare. Think of it as a mandatory community pot that everyone contributes to so that seniors and the disabled have a guaranteed safety net for income and healthcare.
A United States federal payroll tax that is used to fund Social Security and Medicare programs.
A federal health insurance program primarily for people aged 65 or older and younger people with certain specific disabilities or conditions.
An alternative to Original Medicare offered by private companies that provides all Part A and Part B benefits, often including extra services like dental or vision.
The portion of the federal health insurance program for seniors that covers hospital stays, hospice, and some home health care.
The portion of the federal health insurance program for seniors that covers doctor visits, outpatient care, and medical supplies.
A federal program that provides optional prescription drug coverage for individuals enrolled in Medicare.
A payroll tax that funds the Medicare program, providing health insurance for people aged 65 and older or those with disabilities.
Private health insurance policies designed to pay for healthcare costs not covered by original Medicare, such as copayments and deductibles.
A tax consisting of Social Security and Medicare contributions for individuals who work for themselves rather than an employer.