3.7.11: Medicare
Medicare specifically covers healthcare for people over the age of 65. Originally it provided only hospital insurance (part A) and medical insurance (part B). Medicare Advantage plans now allow private insurance to supplement coverage (called Part C), and since 2003, drug costs are now covered (with Part D). To fund this program, workers pay medicare taxes, and those who may not have paid enough medicare taxes over their working years will pay premiums while using Medicare insurance once they retire. Additionally, Medicare only assists with paying for healthcare costs, they are not covered entirely. There are still deductibles, co-insurance and copayments for many healthcare services. However, some expenses like drug costs can be kept significantly lower (for both Medicare and Medicaid), due to government mandated negotiations with pharmaceutical companies.