Often times medical bills can add up very quickly, even more so if you do not have insurance. The United States of America offers a special type of insurance, called Medicare, to some of its citizens. Over 40 million Americans currently use Medicare.
Medicare is an amendment to the Social Security Law and was added on July 30, 1965. President Lyndon B. Johnson signed the bill at a special ceremony where President Harry S. Truman became the first person to be enrolled in the new program. The goal of the program is to provide affordable health care for US citizens, who in some cases might not otherwise be able to afford their medical bills.
In order to qualify and be enrolled in Medicare, you must be a citizen of the United States of America or be a permanent legal resident for at least five years. Eligibility is generally restricted to those who are at least 65 years old, but some exceptions do apply. If you are under 65, but have been receiving Railroad Retirement Disability Benefits or Social Security Benefits for at least 2 years, you may also quality. People who have severe kidney problems or suffer from Lou Gehrig's disease can, in most cases, qualify as well.
Medicare covers many types of medical expenses, but does require a co-pay for some things. Hospital stays, doctor visits, and durable medical equipment is usually covered. The benefits are divided into four categories: Part A, Part B, Part C, and Part D.
Part A benefits, which cover nursing and hospital stays, and Part B benefits, which cover doctors visits and durable medical equipment, where both part of the original Medicare Bill.
Part C Benefits, which covers Medicare Advantage Plan, was added in 1997. A Medicare Advantage Plan is a insurance plan that is offered by a private insurance company and is an alternative to Part A and Part B benefits. A Medicare Advantage Plan must cover all of the same things that are covered under Medicare Part A and B, but they can choose how they do this. This means that the cost of some services might be different when using a Medicare Advantage Plan. Part D benefits address prescription drugs and did not go into effect until the beginning of 2006.
About $256 billion dollars were spent on Medicare during 2002. This spending has increased dramatically and in 2007 about $440 dollars was spent on Medicare. It is expected that in 2008, Medicare costs will exceed what is brought in from taxes and by 2019, the Medicare Fund will be expended. One of the reasons for this is that the ratio of workers that pay Medicare Taxes to Medicare recipients is shrinking. At present there are 3.9 workers for every Medicare Recipient, but over the next 22 years, that figure is expected to decrease to 2.4 workers for every recipient.
Medicare provides a very powerful tool for those who are over 65. While there are some out of pocket expenses for the insured, many of the costs are still differed.