| A Brief Overview Of The Medicare Program Provisions |
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| Written by Mark Spencer |
| Sunday, 18 April 2010 17:08 |
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In 1965, President Lyndon Johnson signed into law an amendment to the Social Security regulations and laws. This revision was known as Medicare. Originally, the were only two parts to the law. Hospital insurance was covered under Part A and medical insurance provisions came under Part B. By 2008, more than forty-five million individuals in the United States were enrolled in the program. Estimates of beneficiaries in 2030, when the baby-boomers are all under the auspices of the program, reach 78 million people. It is expected to be the largest social program of its kind on the planet.
In 1965, President Lyndon Johnson signed into law an amendment to the Social Security regulations and laws. This revision was known as Medicare. Originally, the were only two parts to the law. Hospital insurance was covered under Part A and medical insurance provisions came under Part B. By 2008, more than forty-five million individuals in the United States were enrolled in the program. Estimates of beneficiaries in 2030, when the baby-boomers are all under the auspices of the program, reach 78 million people. It is expected to be the largest social program of its kind on the planet. The program is partially funded by employer and employee payroll taxes collected by the Federal Insurance Contributions Act (FICA) and the Self-Employment Contributions Act of 1954. The cost of a payroll-based tax is 2.9 percent, of which half is paid by the employee and half by the worker. When the beneficiary is self-employed, the entire amount must be paid into the program. In the original program, Part A referred to hospital insurance. Generally, anyone age 65 or higher who is a United States citizen and has paid into the system for at least ten years doesn't need to pay Part A premiums. Part A pays for inpatient hospital costs, including doctor's services after a deductible is paid. Part A also cover convalescent stays in a skilled nursing facility for a limited time. Some co-payments may be required, depending upon the length of the stay. Part B coverage is for the purpose of medical costs. It is optional, but unless the individual or spouse is working, there is a penalty for not enrolling in the program. Part B covers many of the outpatient costs. Some of the benefits under Part B include physician and nursing services, administration of medications by a physician, medical equipment, prosthetic equipment and other related equipment and supplies. Under Part C, individuals can purchase private insurance plans for benefits offered under Parts A and B. This program section includes prescription medications. The enrollee must still pay part C premiums in addition to those of Part A if applicable and Part B. If the benefits under Part C are not included in Parts A or B, there may be additional fees. The latest addition to the program is Part D. It is intended to pay for stand-alone medication plans. Sometimes it is in conjunction with Part C plans. This part of the programs requires that those receiving benefits contribute out-of-pocket expenses as well as premiums. Premium costs for Part A enrollees are generally waived. Part B premiums in 2009 were $96.40 per month. These costs are automatically deducted from the Social Security benefit check. Part C and Part D premiums vary according to the program and the coverage. Some of the Part C plans rebate a portion of the Part B premium to enrollees. An extensive system of reviews and checks are in place to prevent misuse of the Medicare benefits system. There continues to be complaints of fraud and waste in the program, mostly directed at the doctors and hospitals who receive reimbursement for covered services provided. With the passage of the the U. S. Health care reform legislation, it is expected that there will be significant changes in the provisions of the law. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Learn more about medicare part b. Stop by Mark Spencer's site where you can find out all about medicare part d plans and what it can do for you. |