Final answer:
Medicare, a federal health insurance program, has four parts: Part A covers hospital care, Part B covers outpatient services, Medicare Advantage (Part C) is an alternative offering by private companies that often includes Part D for prescription drugs, and Part D alone covers prescription medications.
Step-by-step explanation:
Overview of Medicare Parts and Coverage
Medicare, established in 1965, is a federal health insurance program primarily for individuals 65 and older, and others with disabilities. It consists of several parts, each covering different aspects of healthcare services:
Part A (Hospital Insurance): This covers inpatient hospital stays, care in a skilled nursing facility, hospice care, and some home health care. Part A is funded by payroll deductions and employer contributions. Beneficiaries are responsible for deductibles and copayments. There are no lifetime coverage limits.
Part B (Supplementary Medical Insurance): An optional insurance that covers physician services, outpatient care, and medical supplies. Participants pay a monthly premium, an annual deductible, and copayments. The government funds approximately three-fourths of Part B costs.
Medicare Advantage (Part C): Offered by private companies, it bundles Part A and B, and sometimes Part D. It is funded through the Medicare program.
Part D (Prescription Drug Coverage): It helps cover the cost of prescription drugs. This part is also funded by premiums and general revenues.
With rising healthcare costs and an increasing number of enrollees, Medicare faces significant financial challenges, much like Social Security. However, its essential purpose is to provide healthcare access to populations who might otherwise lack coverage.