Final answer:
Medicare eligible expenses are healthcare costs that are covered under Medicare's rules without being limited by time, geography, frequency, or severity. They are part of either inpatient or outpatient services and necessary treatments. Over time, Medicare has been expanded and supplemented to cover more services and a larger population, but gaps in coverage still exist.
Step-by-step explanation:
The definition of "Medicare eligible expense" for a Medicare supplement policy refers to any healthcare expense that is approved for coverage under Medicare's rules but is not limited by time, geography, frequency, or severity of the health condition. These expenses can cover a wide variety of medical services and supplies which are considered medically necessary and are part of an approved treatment regimen. Under Medicare, eligible expenses generally include inpatient and outpatient medical services and supplies, physician services, and some forms of preventive care.
Medicare has evolved since its inception in 1965 to provide health insurance to the elderly and disabled, covering various services and managing rising healthcare costs. Despite being funded by payroll taxes, premiums, and general revenues, it does not cover all medical expenses which is why supplementary policies are often needed. The boundaries of what is considered a Medicare eligible expense are subject to federal regulation and cannot be arbitrarily restricted based on factors such as time, geography, frequency, or severity.
As spending on Medicare and Medicaid is projected to grow, supplement policies play a critical role in filling the gaps in coverage, ensuring beneficiaries are not left to shoulder significant healthcare costs on their own. Eligibility for Medicare and supplementary plans is critical as it provides a safety net for those most in need, including the expansion of Medicaid under the Affordable Care Act to cover more low-income Americans.