Medicare has what important characteristics?

Medicare has what important characteristics?

• A. It was added to the Social Security Act in 1965, funded partly by elderly contributions and general tax revenues, and is not means-tested, for individuals 65 and older.
• B. It is means-tested and only for low-income elderly.
• C. It is funded entirely by private premiums.
• D. It covers only hospital services and excludes physician services.

Answer: (A)

Medicare is a federal health insurance program created in 1965 as part of the Social Security Act amendments. It functions as a social insurance program, funded by a mix of worker payroll taxes (Hospital Insurance trust fund) and general tax revenues, with some beneficiary premiums for certain parts. Eligibility is not based on income; people age 65 and older typically qualify, along with certain younger people with disabilities or specific conditions. This combination of funding sources and non–means-tested eligibility is what sets Medicare apart from needs-based welfare programs and from plans funded solely by private premiums. In addition to hospital coverage (Part A), it also provides medical coverage (Part B), with further options (Part C and Part D) that expand benefits. The point is that Medicare’s design relies on social insurance funding and universal age-based eligibility, rather than being means-tested or financed entirely by private premiums or limited to hospital services.

Medicare is a federal health insurance program created in 1965 as part of the Social Security Act amendments. It functions as a social insurance program, funded by a mix of worker payroll taxes (Hospital Insurance trust fund) and general tax revenues, with some beneficiary premiums for certain parts. Eligibility is not based on income; people age 65 and older typically qualify, along with certain younger people with disabilities or specific conditions. This combination of funding sources and non–means-tested eligibility is what sets Medicare apart from needs-based welfare programs and from plans funded solely by private premiums. In addition to hospital coverage (Part A), it also provides medical coverage (Part B), with further options (Part C and Part D) that expand benefits. The point is that Medicare’s design relies on social insurance funding and universal age-based eligibility, rather than being means-tested or financed entirely by private premiums or limited to hospital services.