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Medicare is the federal government health insurance program. Those eligible for Medicare can choose to remain with the standard, "straight" medicare program or may choose a private company/Medicare program. These programs usually charge a monthly fee and may cover more services, including prescription drugs, than the standard Medicare does. Some of these are Medicare HMO plans. An HMO plan offers many included services but restricts people to a particular hospital, set of doctors, pre-approvals, etc.
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