What is Medicare?

Medicare is America's health insurance program for those of the age 65+ as well as those with disabilities such as certain diseases or organ failures. The program helps to pay for the cost of health care. However, not all medical expenses are covered with this program.

Medicare is paid for by a piece of the payroll taxes which is paid by employees and their employers and by "monthly premiums deducted from Social Security checks."

Medicare has four parts:

  • hospital insurance: helps to cover the costs of health and hospice care.
  • medical insurance: helps to pay for doctors' and medical services and supplies that hospital insurance does not cover.
  • medicare advantage: binding medical and hospital insurance.
  • prescription drug coverage: helps to pay for medications prescribed by doctors.

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