What Is the Insurance That Elderly People Receive?
Elderly people receive Medicare health insurance. Medicare is funded partly by income tax paid in before retirement and partly by the federal government. It was established in 1965 as an extension of Social Security during the Lyndon B. Johnson presidency.
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Who Qualifies
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Most people do not become eligible for Medicare until the age of 65. People who are eligible before the age of 65 are those with end stage renal disease who need dialysis or a kidney transplant or Lou Gehrig's disease. Disabled people who are receiving Social Security benefits, Medicaid benefits or Railroad Retirement Board benefits who have been disabled for at least two years are also eligible for Medicare.
Hospitalization
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Hospitalization insurance is covered by Medicare Part A which is provided free to qualified individuals who have been gainfully employed for at least 10 years.
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Medical
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Medical insurance is covered by Medicare Part B. There is a premium charged for Part B coverage which is determined by the insured individual's income tax returns. The premium is normally taken from the insured's Social Security retirement income.
Prescriptions
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Payment for prescriptions is covered by Medicare Part D. There are several Part D plans to choose from. The premium varies depending on the plan chosen.
Combination Plan
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Medicare Part C is a managed care combination plan that combines Part A hospitalization, Part B medical and Part D prescription coverage. It is also referred to as a Medicare Advantage plan and works like a health maintenance organization (HMO). Premiums vary depending on the plan chosen by the insured.
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