Medicare, a federally supported program, was adopted in 1965 to provide health coverage and services to the elderly seniors (over 65) and disabled citizens without regard to income or medical history. Its funds come directly from federal governments and beneficiaries. Medicare revenues come from interest, taxation of social security benefits, state payments, payroll taxes, beneficiary premiums and general revenue. The government uses money generated from taxes to reimburse providers who take care of patients enrolled in these programs. Medicare consists of four parts including: A, B, C, and D. Part A is the Hospital Insurance that includes inpatient hospital care, skilled nursing facility, hospice care and limited home health services. Part B is the Supplemental Medical Insurance that covers physician services, outpatient hospital care, select preventive and diagnostic services, mental health and home health visits. Moreover, Part C is the Medicare Managed Care, also known as Medicare Advantage that provides care through local managed care plans. Finally, Part D involves the Prescription Drug Benefit. It is different from other elements of Medicare, since it s enrollment is voluntary and is subsidized for individuals with low incomes and assets. Traditional fee for service Medicare is highest with 75% while Medicare advantage is 25% including HMOs and PPOs. Medicare accounts for 12% of the health insurance coverage in the United States. Medicare enrollment has significantly increased 20.4 million in 1970 to a high of 47.7 million in 201, and expected to reach a high of 81.0 million in 2030. Hence, the number of people Medicare serves will nearly double by 2030. Medicare also has a good percent of federal budget of about 15.1% in 2010. Not to mention, Medicare spending as a share of GDP has significantly risen the last decade. Percentage of Medicare Beneficiaries Enrolled in Medicare Managed Care has developed from 1991to reach a high of 24% in...
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