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6 Frequently Asked Questions About Medicare And Medicaid

6 frequently asked questions about Medicare and Medicaid

Health insurance is a program that protects an individual against the costs associated with medical as well as surgical expenses.

How can a person purchase health insurance?

  • An individual can choose between different kinds of health insurance policies.
  • In America, as per the statistics of the National Health Interview Survey, 65% of the individuals in the country aged below 65 years have private health insurance.
6 Frequently Asked Questions About Medicare And Medicaid
  • Individuals can also purchase health insurance as social insurance or social welfare funded program that is operated by the government.
  • In such health insurance policies, resources are pooled, and the risk of financial expenditures for medical services are distributed among the entire population to ensure that every person is protected.
  • These health insurance policies are for people who cannot afford expensive medical services.
  • In countries like the United States of America, health insurance is considered to be an employment perk since most employers offer it as a part of their benefits packages.
  • However, such people most often lose their health care coverage whenever they are unemployed, or when they change their jobs.
  • What is Medicaid?

    • It is the largest health insurance program that pays for the medical expenses of low-income citizens of our country.
    • The Health Insurance Association of United States of America defines Medicaid as a government health insurance program for individuals of all ages, whose resources and income are not sufficient to pay for the required medical services.
    • As per the statistics of 2017, Medicaid has covered 74 million low-income persons as well as individuals with disabilities.
    • It offers other benefits like personal care services and nursing care facilities.
    • The Federal Government has designed this program, and the state governments administer it. Both these bodies jointly fund Medicaid.
    • Initially, it began as a program that paid for the medical care of those people who were not in a position to work, offering blanket coverage to the blind, the disabled, the aged as well as families with single parents.

    Who is eligible to apply for Medicaid?

    • A person is eligible to apply for Medicaid if they meet the federal income as well as standard assets norms, and also fit into the specified eligibility criteria.
    • Today, Medicaid covers pregnant women and children.
    • Families with unemployed parents are also eligible for Medicaid.
    • However, families who have recently lost Medicaid coverage as a parent has attained employment can remain insured for one year.

    What is Medicare?

    • Medicare is a national health insurance program.
    • The centers of Medicare and Medicaid of Federal Government of United States of America undertake the administration of this program.
    • It began under the Social Security Administration in the year 1966.
    • Medicare receives its funding from a combination of premiums and surtaxes from beneficiaries, payroll taxes, as well as other revenues.

    Who is covered by Medicare?

    • Under its health insurance coverage come those individuals who are 65 years and above, and have worked and paid into this system by contributing through payroll taxes.
    • Medicare also extends its coverage to those individuals who have specific disabilities as determined by Social Security Administration.
    • Further, the coverage of this health insurance program extends to individuals who have end-stage renal disease, which is a permanent kidney failure that requires either a transplant or regular dialysis.

    What are the various parts of Medicare?

    • Hospital insurance/Medicare Part A: This Medicare plan covers the in-patient treatment in a professional nursing home, hospice care, stay at a hospital, and other home health care treatments.
    • Medical insurance/Medicare Part B: This part of Medicare covers some services of the doctor, outpatient care, prevention services as well as other medical supplies.
    • Medicare Advantage Plans/Medicare Part C: This is a type of medical health plan provided by a private company contractually linked with Medicare. This health insurance plan covers the benefits provided by medical insurance and hospital insurance. Part C also includes a health maintenance organization, fee for service plan, special needs plans, preferred provider organization and also Medicare medical savings account plans.
    • Prescription drug coverage/Medicare Part D: This part of Medicare provides coverage for specific Medicare costs, original Medicare, certain Medicare fee for service plans, and Medicare medical savings account plans.
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