Medicare
Enacted in 1965, Medicare is a health insurance program that is generally available to all people age 65 and over. It is also available under certain circumstances to persons younger than 65 who have disabilities or end-stage renal disease. Medicare is funded exclusively at the federal level, unlike Medicaid which is funded jointly by states and the federal government.
There are multiple components of the original Medicare program, each covering different types of services. Medicare Part A covers inpatient hospital stays, is generally available to all beneficiaries automatically, and typically does not require a monthly premium. Part B covers physician visits, outpatient care and other services not covered under Part A. An optional component of the Medicare program, Part B requires the beneficiary to pay a monthly premium and deductibles apply. Prescription drug coverage was recently offered to all Medicare beneficiaries through Part D. Also an optional component of the program, enrollees who elect to purchase it usually pay a monthly premium.
An alternative to original Medicare, Medicare Advantage Plans are health plan options approved by Medicare and run by private companies. Sometimes called Part C, Medicare Advantage Plans provide Part A and Part B coverage and can sometimes do so at a lower cost to the beneficiary than traditional Medicare. These plans often also provide prescription drug coverage.