What is Medicare?

The costs of home medical care, hospital visits, and prescription drugs can add up fast. If you are without health insurance and do not work than these costs can be even more stifling. For those that live in the United States, there are several social programs offered by the Government and private companies that can help you pay these costs. One service offered by the US Government is Medicare. Medicare is a state funded insurance program that is geared towards helping Americans with their medical bills.

President Lyndon Johnson signed the Medicare bill in July of 1965 as part of an amendment to the Social Security program. The Social Security Program was signed into law in 1935 and came at a time when the United States was trying to bounce back from the Great Depression. Its purpose was to provide a means of limiting the effects of poverty, unemployment, old age, widows, and fatherless children on the American people. This was in many ways a landmark act by President Roosevelt, because by signing the Social Security Act, he was in effect the first president to publicly endorse protection for the elderly.

Medicare came as part of several changes to the Social Security program in the 1960's, and it greatly changed the program. Many Americans of the War Generation were nearing retirement age and poverty levels had been growing steadily. Several amendments were introduced to the Social Security Act to combat these problems. The Medicare Amendment was introduced because Johnson wanted to remove some of the burden of from people whose life savings were being consumed by medical bills, as well as the costs of paying for the care of elderly parents.

The Medicare Program is in large part funded by taxes that are taken from working American's paychecks. The employer is responsible for matching the amount that is taken from each of their employees paychecks, which comes to 2.9% total. Those that are self employed are responsible for the whole 2.9%. In 2004 the United States government spent about $257 billion on Medicare. This figure has continuously grown, and by 2007 Medicare spending was nearly double at $440 billion. This figure represented about 15% of all Federal Government spending in 2007.

Medicare provides health coverage to millions of Americans every year, which might otherwise not be able to afford it. Approximately 43 million Americans used Medicare services in 2007, and by 2031 this number is expected to nearly double. In order to be eligible for Medicare you must meet several criteria. One of the key requirements is citizenship; you must have been a permanent legal resident for at least 5 years to qualify. Those who are over 65 are automatically covered by Medicare.

If you are under 65 and disabled, then you may also be eligible for Medicare. Those under 65 must be disabled and have been receiving Social Security benefits or Railroad Retirement Board benefits for at least 2 years to qualify for Medicare. Medicare also covers those on dialysis for permanent kidney failure, people who need kidney transplants, or people who have Lou Gehrig's disease.

Medicare provides a valuable service to many Americans who may otherwise be unable to afford their medical bills. It helps millions of Americans each year and many could not survive without it.

Steve Wynler is a contributor and writer for http://www.usmedicalsupplies.com, a leading supplier of home medical equipment like stair lifts, wheelchair lifts, and lift chairs.