Yvette Pierce
LP4 Assignment
07/01/2015
Medicare Part A

What is Medicare Part A? Discuss the financing Medicare Part A. What services does Part A cover?

In the United States, Medicare is a national social insurance program, administered by the U.S. federal government since 1966, currently using about 30 private insurance companies across the United States. Medicare provides health insurance for Americans aged 65 and older who have worked and paid into the system. It also provides health insurance to younger people with disabilities, end stage renal disease and amyotrophic lateral sclerosis. Medicare is a federal health insurance program established by Congress in 1965. It provides healthcare benefits for people 65 or older, people younger than 65 who have certain disabilities, and people of any age who have permanent kidney failure. While it gives basic protection against health care costs, it won’t cover all your medical expenses or the costs of most long-term care. The Centers for Medicare and Medicaid Services (CMS) is the organization that manages Medicare. However, Social Security offices actually enroll applicants into the program and will give you specific information about it. Medicare benefits are divided into two parts. Part A primarily covers inpatient hospital, skilled nursing facility care and home health care. Once enrolled in Medicare, you will receive these benefits automatically and do not pay premiums for them (you’ve already paid for them through your taxes). When you apply for Part A, you can enroll into Part B. Medicare is funded primarily from three sources: general revenues (41%), payroll tax contributions (38%), and beneficiary premiums (13%). Part A (the Hospital Insurance program) is financed primarily through a 2.9% tax on earnings paid by employers and employees (1.45% each) (accounting for 88% of Part A revenue). Higher-income taxpayers (more than $200,000/individual and $250,000/couple) pay a higher payroll tax on earnings (2.35%). Part A Trust Fund solvency is affected by growth in the economy, which affects revenue from payroll tax contributions, health care spending trends, and demographic trends: an increasing number of beneficiaries, especially between 2010 and 2030 when the baby boom generation reaches Medicare eligibility age, and a declining ratio of workers per beneficiary making payroll tax contributions.

Reference: https://en,wikipedia.org/wiki/medicare_(United_States) www.calregistry.com/resources/medicare.htm https://kff.org/medicare/fact-sheet/medicare-spending-ar https://www.ehealthmedicare.com/about-medicare/