Final answer:
Medicare Part D provides prescription drug coverage and was designed to assist Medicare beneficiaries with the cost of their medication. It is funded through the Supplementary Medical Insurance trust fund with premiums and general revenues.
Step-by-step explanation:
Medicare Part D is a type of insurance that provides prescription drug coverage to beneficiaries. Unlike Part A, which covers hospital charges, and Part B, which includes medical insurance for physician services and outpatient visits, Part D specifically addresses the need for affordable prescription medication. It was established by the Medicare Prescription Drug and Modernization Act of 2003 to assist the elderly and disabled who typically require multiple medications.
Funding for Part D is included in the Supplementary Medical Insurance trust fund, with about 25% coming from beneficiary premiums and the remaining 75% from general revenues. This setup shows a commitment to ensuring that those eligible for Medicare have access to necessary pharmaceuticals without bearing the entire financial burden. The addition of Part D to Medicare highlighted a significant improvement in public healthcare by responding to the previously unmet needs of a large portion of the population for affordable prescriptions.