Medicare

Medicare is the United States Government safety net 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.

Originally, Medicare covered only those 65 and older. In 1972, Congress added the disabled, now about 15% of beneficiaries. It also covered dialysis for kidney failure. In 2003, Bush asked for and Congress created a drug benefit. Other services such as hospice care and mammograms have been added.

Politics

Medicare was first implemented as part of President Lyndon Johnson's Great Society in 1965.

Former Democratic Sen. John Breaux made a proposal which supports raising the Medicare eligibility age. [1]

Medicare accounts for more than one-fifth of all health spending in the U.S.. Its costs per beneficiary, about $12,000 in 2008, rose at an average annual rate of 8.5% a year from 1970 to 2007.

Medicaid

Medicare is entirely separate from Medicaid, a federal program that provides health benefits for poor people without insurance.