About

The program was established in 1965 as part of the Social Security Act and is administered by the Centers for Medicare and Medicaid Services (CMS). Medicare is divided into different parts, each covering specific services. Part A, also known as Hospital Insurance, covers inpatient hospital care, skilled nursing facility care, hospice care, and some home health care. Part B, also known as Medical Insurance, covers medical services, preventive services, and outpatient care. Part C, also known as Medicare Advantage, offers an alternative to the original Medicare program and is provided by private insurance companies approved by Medicare. Part D is the prescription drug coverage portion of Medicare and is also provided by private insurance companies. Medicare is funded through a combination of general tax revenue, premiums paid by enrollees, and payroll taxes. Eligible individuals are automatically enrolled in Part A of Medicare, but must choose whether to enroll in Parts B and D. Enrollees have the option to purchase supplemental coverage, known as Medigap, to cover costs not covered by Medicare. Since its inception, Medicare has provided millions of Americans with access to affordable healthcare. However, the program faces challenges such as rising costs and an aging population. Efforts to reform and strengthen Medicare are ongoing, with debates surrounding issues such as funding, coverage expansion, and the role of private insurers. Overall, Medicare plays a crucial role in ensuring that older Americans and those with certain disabilities have access to necessary healthcare services and prescription medications. It remains a significant aspect of the U. S. healthcare system and continues to evolve to meet the changing needs of its beneficiaries.