Final answer:
Medicare and Medicaid are U.S. federal programs focusing on providing health care for the elderly, disabled, and individuals with very low incomes. An aging population is expected to increase demand and spending on these programs, raising sustainability concerns. The elderly also represent a significant political interest group with high voter turnout rates.
Step-by-step explanation:
Individuals over the age of 65 and disabled individuals are the current focus of Medicare and Medicaid, the two main publicly funded healthcare programs in the United States. Medicare provides health services primarily to people over sixty-five years old and to people who meet standards for disability. On the other hand, Medicaid provides services to individuals with very low incomes who meet specific eligibility requirements. Furthermore, these programs are adjusted to cater to certain demographics, such as Native Americans via the Indian Health Service, Veterans via the Veterans Health Administration, and children through the Children's Health Insurance Program (CHIP).
With an aging population, the demand for Medicare is steadily increasing. In the early 2000s, about 40 million Americans were eligible for Medicare. By 2030, it is forecasted that one in five Americans will be over age 65, which will significantly increase spending on Medicare, as well as on other programs such as Social Security and Medicaid. The elderly also represent a powerful interest group, evidenced by their high voter turnout rates. For instance, in the 2020 presidential election, 76\% of those ages 65-74 voted, a much higher percentage compared to the 51\% voter turnout among those aged 18 to 24.
The growing number of elderly Americans is expected to increase spending on these enormous federal programs, which also poses a challenge for the sustainability of these services. The current payroll tax, which supports all of Social Security and the hospitalization insurance part of Medicare, may not be sufficient to cover the expected costs, raising important policy questions about how to fund these programs going forward. Some coverage is also provided for Medicaid, which caters to over 50 million poor and disabled Americans, with more than a third of them being over 65. The program assures coverage for hospital stays, physician fees, and various diagnostic services, with the federal government paying about half of these costs and states covering the remainder.