Medicare

Medicare is the government health care system that reimburses most expenses for covered medical services for persons over 65 years old and for certain disabled persons under 65 years old as follows:

• all hospital charges for covered services are reimbursed under Medicare Part A; and

• most physician fees for covered services are reimbursed under Medicare Part B for individuals who have enrolled in Part B and make payments for that coverage.

The reimbursements under Medicare have been declining in real dollars over time and the system is predicted to go bankrupt in a few decades.