MEDICARE & MEDICAID
Medicare is the Basic Health Insurance Program for people age 65, or older, and many people with Disabilities. Medicare Insurance Coverage is paid by the Medicare Tax, which is paid on your wages, or income earned. In 2005 the rate, or %, was a total of 2.9%. If you were employed, you & your employer paid Medicare Tax @ 1.45% each, to equal 2.9%, If you were self employed, you paid 2.9%.
*Medicare is managed by the Centers for Medicare, and Medicaid Services, not Social Security.
You should not confuse Medicare, and Medicaid (Hint = Medic-aid).
Medicaid is a Health Care Program for People with Low Income, and Limited Resources. It is usually run by State Welfare, or Social Services Agencies. Some people qualify for one or the other, while some people qualify for both Medicare and Medicaid.
Medicare has two (2) parts
Medicare provides—
• Hospital Insurance (Part A) that helps pay for inpatient hospital care and certain follow-up services;
and
• Medical Insurance (Part B) that helps pay for doctors’ services, outpatient hospital care and other medical services.
Who is eligible for Hospital Insurance (Part A)?
Most people get hospital insurance when they turn 65. You qualify for it automatically if you are eligible for Social Security or Railroad Retirement benefits. Or you may qualify based on a spouse’s (including divorced spouse’s) work. Others qualify because they are government employees not covered by Social Security who paid the Medicare tax. If you get Social Security disability benefits for 24 months, you will qualify for hospital insurance. Also, people who have permanent kidney failure that requires maintenance dialysis, or a kidney replacement, or who have amyotrophic lateral sclerosis (Lou Gehrig’s disease) qualify for hospital insurance if they have worked long enough, or if they are the spouse, or child of a worker who qualifies.
Who can get Medical Insurance (Part B)?
Almost anyone who is eligible for hospital insurance can sign up for medical insurance. Part B is an Optional Program, It is ‘Not’ free. In 2005, the monthly premium was $78.20 per month. Most people sign up for this part of Medicare. Help with Medicare expenses for people with low income If you have a low income, and few resources, your state may pay your Medicare Premiums. In some cases, the state may pay other “out-of-pocket” medical expenses, such as deductibles and coinsurance. Only your state can decide whether you qualify for help under this program. If you think you qualify, contact your state, or local medical assistance (Medicaid) agency, social services, or welfare office.