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Health Insurance Vs Medicare Essay

530 Words3 Pages

Medicare and Medicaid are two different government-run programs that were a response to the inability of older and low-income Americans to buy private health insurance. This paper will answer many different questions, 5 questions to be exact, that many of people ask when looking at the difference between medicare and Medicaid
The first one that is asked a lot is when and why each program started. Medicare and Medicaid both were signed in on July 30th, 1965 by President Lyndon B. Johnson. They were both part of President Lyndon Johnson’s “Great Society” vision of a general social commitment to meeting individual health care needs. Medicare and Medicaid are social insurance programs that allow the financial burdens of illness to be shared among …show more content…

Well, Medicare if paid through two trust fund accounts held by the U.S. Treasury and can only be used for Medicare. One of them is the Hospital Insurance (HI) Trust fund that are the payroll taxes paid by most employees and or employers. Some other sources are; income taxes that are paid on Social Security benefits, the interest earned on the trust fund investments, and the Medicare Part A premiums from people who aren't eligible for premium-free Part A The other one is the Supplementary Medical Insurance (SMI) Trust Fund. The funds are authorized by Congress, and the premiums from people enrolled in Medicare Part B (Medical Insurance) and Medicare prescription drug coverage, which is part D. Other sources, like interest are earned on the trust fund investments. Now with Medicaid it is different. It is jointly funded by the federal government and states. The federal government pays states for a specified percentage of program expenditures, called the Federal Medical Assistance Percentage (FMAP). Which is the percentage rates used to determine the matching funds rate? It is allocated annually to certain medical and social service programs in the United States of America and is adjusted for each state on a three-year cycle to account for fluctuations in the

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Medicare is a federal government administered healthcare program originally implemented on July 1, 1996. Medicare has four parts (A, B, C and D) that provide different areas and differing levels of coverage. All Medicare programs provide coverage for cover healthcare services to qualifying individuals, known as beneficiaries, which includes Social Security beneficiaries over the age 65, people under 65 with certain disabilities, and people of all ages with end-stage renal disease. Each program provides coverage for medically necessary care and services to covered beneficiaries and has deductibles or copays for covered services. Medicare Part A, Medicare Part B and Medicare Part C all provide coverage for medical services.

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In addition to a medical coverage system for the elderly, the government also created Medicaid, a state and federally run system that provided medical coverage to low income americans. Medicaid had a stigma of class, since it insured people that were too poor to afford private insurance. This meant that taxpayers had to subsidize health care for people who could not have afforded private health insurance. Medicare however did not have a stigma of class because all you had to do is be over 65 years of age to be Medicare eligible. Medicare was later extended to cover the disabled and end-stage renal

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The basic level of needs starts with the cultivation of health. However, this ideology could not be enjoyed or shared in the same way by those who were experiencing forms of poverty. Within America, the healthcare system was drastically expensive, putting those who were impoverished in even further despair. This injustice was apparent in the 1960s and inspired President Johnson to create the Medicare and Medicaid Act of 1965. The Medicare and Medicaid Act of 1965 was built upon the Social Security Act of 1935 and increased benefits under the Old Age, Survivors, and Disability Insurance System.

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Medicare is only a federal based program. One of the other differences between the two are Medicaid will cover long term care and assisted living as long as it is necessary, where Medicare does not. The similarities that I found among the two are the fact that they are both funded federally, and that they are both

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In the United States, Medicare is the program supports people over age 65 with medical care. It also provides support for persons with certain disabilities and people of all ages who have kidney failure. Medicaid is a state administered program that provides medical support for a broad range of people. However, each state administers Medicaid individually and this creates inconsistencies in the program across the country. There are specific rules for judging just how much money someone receiving Medicaid can make and be eligible.

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Over 98 million people in the United States use the Medicare and Medicaid services (“CMS Fast Facts,” 2017, p.4). Medicare and Medicaid spend over 720 billion dollars a year on the different services offered within each program (“CMS Fast Facts,” 2017, p.4). Medicare and Medicaid have been around for 53 years and has served a lot of people in the United States. Although, the services have changed throughout the years it still serves as an option of health insurance to those that need assistance in covering health related expenses. Medicare and Medicaid spend over billions of dollars a year in the United States for the people that need assistance with health related expenses.

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Medicare is funded by taxpayers, with money coming out of each paycheck, social security benefits. I believe this is effective as of right now, but I do not believe that by the time I turn 65 medicare will be running effectively. Medicaid is funded by state and federal governments. With states covering over half the cost. I believe funding programs and organizations that help provide care and inform our citizens is a great resource it will lead to less costs of healthcare for care that could have been avoided.

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Because Medicare is run by the federal government, its coverage, rules and guidelines are basically the same everywhere in the United States. With this program patients pay part of the costs through deductibles for hospital stays and they are required to pay monthly premiums health care services. Medical bills are paid from trust funds which those covered have paid into. Medicare has four parts: Part A: offers

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In medicine, Medicare and Medicaid have made health care more inefficient and more expensive. Former ophthalmologist and Congressman Ron Paul tries to give the reader a sense of a time before such entitlement programs existed. Because Medicare and Medicaid were enacted in 1965, over fifty years ago, it is difficult for most Americans to remember a time without them: “the poor and elderly were admitted to hospitals at about the same rate they are now, and received good care […] every physician understood that he or she had a responsibility toward the less fortunate, and free medical care for the poor was the norm” (Paul). Without Medicaid and Medicare, physicians would act in a similar fashion today, since they did so without a government mandate

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However, younger people may qualify if they have received 24 consecutive months of Social Security disability benefits, along with other specific requirements. There are four parts to Medicare’s benefits. Original Medicare includes Part A and Part B. Part A generally covers hospital care and hospice care, and Part B (Original Medicare) covers services such as medical care, durable medical equipment, and supplies, and some preventative services. Part A is funded primarily through a dedicated payroll tax paid by employers and their employees, while Part B is financed through a combination of general revenues, premiums paid by beneficiaries, and interest.

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For example this quote mention, “Medicaid paid $2.7 billion to the Medicare program on behalf of low-income Medicare beneficiaries for premium and cost-sharing obligations and spent an additional $6 billion to supplement Medicare's coverage of hospital” (Rowland 15). This quote shows the amount that medicaid has already help pay people’s medical bills and it tells that medicaid has pay a big portion of money to help people and which made most people not having to pay the full price. For another example from a website it said, “Medicare Part A- Hospital Insurance covers hospital services, including semi-private rooms, meals, general nursing, drugs as part of your inpatient treatment, and other hospital services and supplies” (The Official Government Medicare site 1). This quote shows that medicare A is something that medicare covers for you when you are sent to stay in hospitals and also treatment and medicine you get while you are there, which having medicare will help cover most of the cost and leaving in good

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Medicaid is a federal program that offers health care to qualified low-income people, who are adults, children, pregnant women, disabled, and elderly. This program is different depending on the state in which one lives, funded by both the federal government and the state (Medicaid, n.d). To get on to Medicaid there are essentially two ways to do so; through financial eligibility where one income counts through a sole request and through a “medically needy program” where those who earn too much money can qualify by spending below the specific state’s needy standard (Eligibility, n.d). This program is that it seems like a good idea on paper, but in reality, more and more people cannot afford to even go see a doctor. Medicaid is a good thing,

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What Is a Medicaid? By: Dave Lee Medicaid is a government-sponsored health program designed to ensure that low-income citizens receive quality health care. It caters over 72.5 million U.S. citizens, including children, senior citizens, parents, pregnant women, and persons with disabilities. The program is funded both by the federal and state government.

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Each state creates its own Medicaid programs, following federal guidelines. Medicare has 15% of the federal budget compared to Medicaid’s 10%. If you qualify for both Medicare and Medicaid, you are considered to be “dual

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It is also for qualifying individuals with a disability. Medicare has several parts that separate each program from the others. Part A which covers hospital bills, along with home health care. Part B includes things such as lab work, physical therapy, and outpatient costs. Part D covers prescription

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