Medicare provides health benefits to U.S. citizens age 65 and older.
According to the Bureau of Labor Statistics "Occupational Outlook Handbook," 2010-11 edition, rising healthcare costs will drive demand for physicians and nurses during the 2008 to 2018 decade. For individuals over age 65, or Americans under 65 with certain disabilities, the U.S. federal government offers Medicare. Medicare health insurance guidelines state that residents with permanent kidney failure and Lou Gehrig's disease can have Medicare at any age. To receive benefits, Medicare enrollees must be U.S. citizens or legal residents of five years or more.
History
Harry S. Truman was the first U.S. president to propose a government, prepaid health insurance plan for lower income and elderly Americans. However, Medicare did not exist until 1965 when signed into law through the Social Security Act by President Lyndon B. Johnson. During Medicare's first year, approximately 19 million people enrolled to receive benefits under the new plan.
Benefits
According to the April 2008 publication, "Centers for Medicare & Medicaid Services," most Medicare participants do not need to pay a monthly premium to receive hospital insurance if they paid Medicare taxes while employed in the U.S. In addition, the government deducts Medicare premiums for doctors' services from recipients' monthly Social Security checks. Although Medicare does not subsidize healthcare entirely, it helps with medical expenses for retired U.S. residents and those suffering from certain illnesses and disabilities.
Features
Medicare has four parts. Part A covers hospital services, such as admissions, emergency care, nursing homes, inpatient rehabilitation and long-term care. Services covered under Part B include doctor's visits for preventative care, though the plan may exclude some services. Part C comprises the Medicare Advantage Plan and includes benefits offered under Part A and B, as well as additional benefits normally not included under Medicare. Part D is for prescription drug coverage, managed by Medicare-approved private insurance companies.
Types
Medicare participants choose between two types of plans: Original Medicare and the Medicare Advantage Plan. Original Medicare includes both medical and hospital insurance managed by the U.S. government. Recipients under this plan pay a deductible and must add Part D for prescription medicine coverage. Medicare Advantage Plans, managed by private insurers, include medical, hospital and drug prescription coverage.
Considerations
To supplement the Original Medicare plan, recipients can purchase Medigap, which helps meet the cost of medical co-payments, deductibles and co-insurances (see Resources). In addition, because Original Medicare does not include prescription drug coverage, costs and insurance benefits vary for each beneficiary. Social Security recipients may also be eligible for additional financial assistance based on personal income and limited financial resources.
Tags: Original Medicare, Medicare Advantage, Social Security, Advantage Plan, drug coverage, hospital insurance, medical hospital
