What is Medicare?

The costs of home medical care, hospital visits, andThe Medicare Program is in large part funded by
prescription drugs can add up fast. If you are withouttaxes that are taken from working American's
health insurance and do not work than these costspaychecks. The employer is responsible for matching
can be even more stifling. For those that live in thethe amount that is taken from each of their employees
United States, there are several social programspaychecks, which comes to 2.9% total. Those that are
offered by the Government and private companiesself employed are responsible for the whole 2.9%. In
that can help you pay these costs. One service2004 the United States government spent about $257
offered by the US Government is Medicare. Medicarebillion on Medicare. This figure has continuously grown,
is a state funded insurance program that is gearedand by 2007 Medicare spending was nearly double at
towards helping Americans with their medical bills.$440 billion. This figure represented about 15% of all
President Lyndon Johnson signed the Medicare bill inFederal Government spending in 2007.
July of 1965 as part of an amendment to the SocialMedicare provides health coverage to millions of
Security program. The Social Security Program wasAmericans every year, which might otherwise not be
signed into law in 1935 and came at a time when theable to afford it. Approximately 43 million Americans
United States was trying to bounce back from theused Medicare services in 2007, and by 2031 this
Great Depression. Its purpose was to provide anumber is expected to nearly double. In order to be
means of limiting the effects of poverty,eligible for Medicare you must meet several criteria.
unemployment, old age, widows, and fatherless childrenOne of the key requirements is citizenship; you must
on the American people. This was in many ways ahave been a permanent legal resident for at least 5
landmark act by President Roosevelt, because byyears to qualify. Those who are over 65 are
signing the Social Security Act, he was in effect theautomatically covered by Medicare.
first president to publicly endorse protection for theIf you are under 65 and disabled, then you may also
elderly.be eligible for Medicare. Those under 65 must be
Medicare came as part of several changes to thedisabled and have been receiving Social Security
Social Security program in the 1960's, and it greatlybenefits or Railroad Retirement Board benefits for at
changed the program. Many Americans of the Warleast 2 years to qualify for Medicare. Medicare also
Generation were nearing retirement age and povertycovers those on dialysis for permanent kidney failure,
levels had been growing steadily. Several amendmentspeople who need kidney transplants, or people who
were introduced to the Social Security Act to combathave Lou Gehrig's disease.
these problems. The Medicare Amendment wasMedicare provides a valuable service to many
introduced because Johnson wanted to remove someAmericans who may otherwise be unable to afford
of the burden of from people whose life savings weretheir medical bills. It helps millions of Americans each
being consumed by medical bills, as well as the costsyear and many could not survive without it.
of paying for the care of elderly parents.