What Is Medicare and Medicaid

Medicaid

Medicare is a health care program by the U.S federal government for people older than 65 and those with certain disabilities for example younger people and people with End Stage Renal Disease (permanent kidney failure requiring dialysis or a transplant). Medicare provides for acute hospital care, physician services, brief stays in skilled nursing facilities and shot-term skilled home care related to a medical problem. Medicare coverage is determine not by a specific diagnoses, but by the nature of services required by the patients. Medicare coverage is restricted to medical care only. It does no include the cost of prescription drugs, custodial care at home or in nursing homes. Prescription drug coverage was added in 2003, but will only take effect in the year 2006.

Medicare was established along with Medicaid in 1965 by the Social Security Act. It was the responsibility of the Social Security Administration. The SSA was an agency of the Department of Health, Education and Welfare (HEW). In 1977, the Health Care Financing Administration (HCFA) was created under HEW to more effectively co-ordinate Medicare and Medicaid.

In most places in the country, people who have Medicare have a choice between a managed care plan and an indemnity plan. People can switch or interchange their plans for any reason, but they must officially inform their change of plan to the local Social Security Office. It can take up to 30 days for this change to come into effect. Medicare has two parts: Part A (Hospital Insurance), and Part B (Medicare Insurance). Medical insurance helps cover doctors' services, outpatient hospital care, and some other medical services that Part A does not cover. However, you have to pay a premium for Part B.