Medicare refers to a governmental program gives medical insurance coverage for retired persons over age 65 or for others who meet specific medical conditions, such as having a disability.
History of Medicare
There were amendments made to the Social Security program. Therefore medicare was signed into legislation in 1965 and is controlled by the Center for Medicare and Medicaid Services (CMS) under the jurisdiction of the Department of Human Services.
Eligibility For Medicare Insurance?
Although it is not perfect,medicare provides medical insurance coverage for over 43 million Americans, many of whom have no medical insurance.Medicare offers them
relatively low cost basic insurance,but doesn’t do much in terms of preventative care such as an annual physical vision care or dental care.
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Medicare is catered for by means of payroll tax deductions (FICA) equivalent to 2.9% of wages; the employee and employer paying half each.
There are four Parts of Medicare:
- Part A deals with hospital coverage,
- Part B deals with medical insurance,
- Part C deals with supplemental coverage
- Part D deals with prescription insurance.
As earlier said,none of these parts have their cost entirely paid for, and parts C and D especially comes with added charges. There is always a premium, co-pay and a deductible. Some low-income people also qualify for Medicare,which assists in paying part of their out-of-pocket costs.
To the fact that the rate of people joining the “retiree group” and become eligible for Medicare is significantly higher than people paying into the system.
It was initially predicted that the system will go bankrupt by 2018, however despite the fact that health care costs are continually on the increase amidst reports of fraudulent financial activities by dubious individuals over the years thus adding to the financial woes of Medicare, the system is still functioning till today.