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American Healthcare Systems

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HMGT 6320.501 – The American Healthcare System, Briefing Paper- 2
Name: Dilpreet Singh
What is Medicare? What are the components and how are they financed? What are the problems facing Medicare? What are your solutions? Medicare: Medicare is the federal health insurance program for people who are 65 or older, certain younger people with disabilities, and people with End-Stage Renal Disease (permanent kidney failure requiring dialysis or a transplant). Administered by the US government since 1966, Medicare is currently using 30 private insurance companies across United States. In 2010, Medicare provided health insurance to 48 million Americans—40 million people age 65 and older and 8 million younger people with disabilities. On average, Medicare covers about half (48 %) of the health care charges for those enrolled in Medicare. The enrollees must then cover the remaining approved charges either with supplemental insurance or with another form of out-of-pocket coverage. Components of Medicare: Medicare has four parts. These different parts help cover specific services. Medicare PART A (Hospital/Hospice Insurance): Part A covers inpatient hospital stays including semiprivate room, food, tests, care in a skilled nursing facility, and hospice care. (Hospice care focuses on palliation of seriously ill patient's pain and symptoms, and attending to their emotional and spiritual needs) Medicare PART B (Medical Insurance): Part B medical insurance covers certain doctors' services, outpatient care, medical supplies, preventive services and products not covered by Part A. Part B is optional and may be deferred if the beneficiary or his/her spouse is still working and has group health coverage through that employer. Medicare PART C (Medicare Advantage Plans): A type of Medicare health plan offered by a private company that contracts with Medicare to provide you with all your

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