Final answer:
Medicare consists of four parts: Part A for hospital insurance, Part B for medical insurance, Part C for Medicare Advantage, and Part D for prescription drug coverage. The correct answer to the question is option 2) Part A, B, C, D.
Step-by-step explanation:
Different Parts of Medicare
There are different parts of Medicare, which include:
- Part A - Hospital insurance, which pays for inpatient hospital stays, care in a skilled nursing facility, hospice care, and some home health care. It is funded by payroll deductions and employer contributions.
- Part B - Medical insurance, covering doctors' services, outpatient care, medical supplies, and preventive services. Participants pay a monthly premium, a deductible, and copayments. The government funds approximately three-fourths of the costs.
- Part C (Medicare Advantage Plans) - A private plan option that combines Part A and Part B, and sometimes includes Part D coverage. It is funded through the Hospital Insurance and Supplementary Medical Insurance trust funds.
- Part D - Prescription drug coverage, helping to cover the cost of prescription drugs. It is funded via beneficiary premiums and general revenues.
Out of the options provided, the correct answer to the parts of Medicare is Part A, B, C, D.
Medicare was established in 1965 and has grown significantly over time. It is a critical component of the healthcare system in the United States, covering millions of seniors and people with disabilities. In 2016, Medicare expenditures reached $692 billion, demonstrating the extensive financial commitment the government has made towards ensuring access to healthcare for these populations.