Medicare
The federal health insurance program known as Medicare covers:
65 years of age or older
certain disabled youths’ underage
End-stage renal disease (ESRD), sometimes known as permanent kidney failure requiring dialysis or a transplant.
What components make up Medicare?
Medicare’s several components assist in covering particular services:
Part A of Medicare (Hospital Insurance)
Part A includes coverage for some home health care as well as inpatient hospital stays, care in skilled nursing facilities, and hospice care.
Medical Insurance under Medicare Part B
Outpatient care, medical supplies, and preventative services are all covered by Part B.
Prescription medications, such as numerous highly advised jabs or immunizations, are helped by Medicare Part D (prescription drug coverage).
Medicare is a broad program of health insurance designed to assist the nation’s elderly to meet
hospital, medical, and other health costs. Medicare is available to most individuals 65 years of age and
older.
Medicare has also been extended to persons under age 65 who are receiving disability benefits from
Social Security or the Railroad Retirement Board and those having End Stage Renal Disease (ESRD).
There are currently over 55 million people enrolled in Medicare.
The CMS is a federal agency within the United States Department of Health and Human Services that
manages Medicare.
History of Medicare:
In 1965, Medicare was enacted as Health Insurance for the Aged (Title XVIII) of the Social Security Act.
Medicare extended health coverage to almost all individuals aged 65 or older (i.e., those receiving
retirement benefits from Social Security or the Railroad Retirement Board).
Medicare eligibility was extended to individuals under age 65 with long-term disabilities and to
individuals with ESRD in 1972. In 1973, the HMO Act provided for start-up grants and loans for the
development of health maintenance organizations (HMOs).
The Health Care Financing Administration (HCFA), now known as the Centers for Medicare & Medicaid
Services, was established to administer the Medicare and Medicaid programs in 1977.
In 2003, the Medicare Prescription Drug, Improvement, and Modernization Act (MMA) created
significant changes to Medicare, including Part D prescription drug benefits and Medicare Advantage
plans. Both became available in 2006.
People often confuse Medicare with Medicaid. They are two entirely different programs. Medicare and
Medicaid were both enacted as part of the Social Security Act and the programs provide comparable
services.
Medicare provides health insurance coverage to individuals who are age 65 and over, under age 65
with certain disabilities, and individuals of all ages with ESRD.
Medicaid provides medical benefits to groups of low-income people, some who may have no medical
insurance or inadequate medical insurance.
Medicare is strictly a federal program. Although the federal government establishes general guidelines
for Medicaid, the Medicaid program is administered by the states.
Parts of Medicare:
- Part A (Hospital Insurance)
- Part B (Medical Insurance)
- Part C (Medicare Advantage Plans)
- Part D (Prescription Drug Coverage)