Medigap for Today: Coverage Begins Tomorrow

Medicare Insurance is the name given to the health insurance system managed by the U.S. government and intended for people over 65 or meet certain criteria. The name comes from a contraction between medical (medical) care (care, care). The first law which established Medicare was enacted 30 July 1965 chaired by Lyndon B. Johnson as amendments to the social security legislation, as part of its draft “war against poverty”. During the passage of the law, President Johnson said of former President Harry S. Truman’s first recipient from the program, delivering the first Medicare card.

Financing an Cost
Medicare is partially financed by taxes imposed by the law of contribution for federal employment assistance and health in 1954. For employees, the tax represents 2.9% of salary (half is paid by the employee, the other by the employer). Until December 31, 1993, the law provided a maximum amount beyond which the salary could not be imposed. But from 1 January 1994, this limit was removed. For independent. represents 2.9% tax on net income paid in full by him.

The fiscal year 2002 (2004 figure), Medicare cost 256.8 billion dollars: USD 230.9 billion were financed by taxes, the rest by the government.Comparison of Medigap insurance plans

In 2003, Medicare accounted for 13% of the federal budget. Calculations of the CMS, 33% of every dollar spent on health care in the United States is supported by Medicare Insurance and Medicaid. In the other direction, Medicare and Medicaid covered 61% of expenditures in nursing, 47% of hospital expenditure and 27% of medical expenses.

Medicare is one of the reasons why the U.S. health system is still far behind other Western health systems [ref. necessary]. Medicare has indeed a very large cost for poor results because the cost of the system is due to the exorbitant prices of private and Medicare should cover.

Medicare Operations and Listings

In general, individuals can receive assistance from Medicare if they (themselves or their spouses) contributed at least 10 years, are aged over 65 and live permanently in the United States.

Individuals who are under 65 years may also be eligible provided they are disabled or be at the final stage of kidney disease. These people need to be eligible to receive aid either the Social Security Fund is financing the retirement pensions of rail workers.

In 2005, Medicare provided coverage of diseases for 42.5 million Americans. With the arrival of the baby boomers retire, experts estimate that 77 million Americans are covered by Medicare. Medicare Insurance

The Medicare program is divided into two funds: a hospital insurance and medical insurance fund. Two other special funds provide a blanket which is combined with private insurance, and coverage for detoxification.

However, none of these funds will fully fund the cost of care. The program provides for the payment of insurance, deductible expenses, but in any case the individual will pay a large part of his pocket (out-of-pockets costs). We can probably qualify that by adding that other government programs such as Medicaid to help pay some expenses associated with Medicare. Programs such as Medigap insurance help bridge the difference, however, that these assurances are legally established by the CMS, they are sold and administered by private companies.

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