Medicare provides health insurance to more than 45 million US residents. Medicare is the Social Insurance Program, managed by USA. People who are above age of 65 years, or who meet some special criteria can only join this program. This program was started by President Johnson in 1965.

Funding for Medicare comes from taxes as well as self-contribution. The CMS is charged with administering the Medicare program. People who are eligible to receive Medicare benefits should be either US citizens or be staying in USA for more than 5 years, legally. Other conditions regarding this benefit are,

- People who are 65 years or older,

- People who are under 65 years, but are disabled and receiving benefits for more then 24 months

- People who qualify for dialysis etc

Original Medicare plan has two parts, one which provides medical insurance and other which provides for hospital insurance also. Post 1997, through a special act, Medicare beneficiaries can get the benefits from private insurers also. Now, prescription drugs also come under its preview. If you wish to know more about this plan, you can read all details in the special CMS brochure.

Monthly premium paid by participants in this program is small and rest is contributed with help of a yearly deductible. Every year, between Nov 15 and Dec 31, one can review plans, change plans if they need it. Medigap plan ensures that a person, who does not get full cover, may do so using additional cover also.

The Medicare Plan is contracts other medical insurance providers for processing the claims received every year. In one year more than a billion claims are processed by Medicare alone. According to CMS data, of USD 1 paid towards health insurance, Medicare and allied plans contribute 33 cents.

The Medicare bill is more than USD 260 billion every year. There is a growing concern that Medicare payments will soon outgrow its income and by 2019 it may become insolvent. US Govt. needs to put aside about USD 75 trillion, so the principal and interest can pay for insurance claims for next 75 years.

Recently, Medicare has regulated medical facilities which undertake complex procedures like bariatric surgery, complex oncology related procedures etc. Medicare publishes its own fee schedule that it will pay to doctors for their services as well to medical equipment suppliers etc.

Medicare Premiums which will be applicable 2009 are as follows:

Hospital Insurance Premium

- People who themselves or with their spouses have 40 or more quarters of Medicare covered employment, need not pay the monthly premiums.

- People who have completed from 30 quarters to 39 quarters will pay USD 244 every month as premium.

- People who have completed less then 30 quarters will pay USD 443.00 as premium.

Medical Insurance Premium

- This is fixed at USD 96.40 every month.

Medicare Deductible and Coinsurance Amounts:

- For this part, payment differs with time period and will range from USD 1068 to USD 534 per day.

This is an excellent plan which covers almost all health care costs for US residents and is not expensive also.