Final answer:
Medicare Part A covers inpatient hospital care, skilled nursing facility care, and other related services for eligible individuals, funded through payroll taxes with beneficiaries paying deductibles and copayments.
Step-by-step explanation:
Medicare Part A pays for inpatient hospital care, skilled nursing facility care, long term care hospitals, and hospice. It helps cover expenses for individuals eligible for Social Security benefits and is funded primarily through payroll deductions and contributions from employers. Beneficiaries must pay a deductible before Medicare coverage kicks in, as well as copayments for various services, without a cap on total personal expenses.
Created in 1965, Medicare has grown to provide essential health services to a significant portion of the population, with expenditures reaching $692 billion in 2016. It is structured into four parts, including Hospital Insurance and Supplementary Medical Insurance, and plays a crucial role alongside Medicaid in providing healthcare coverage to the elderly, disabled, and low-income individuals, with the latter covering costs like nursing home care for many Americans.