Healthcare Financing - Kot Task 2

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Healthcare Financing Medicare was created in 1965 as a way to provide affordable health care to qualified United States residents age 65 and older. In addition to the age criteria, a person can quality for Medicare if they are disabled and receiving Social Security benefits for at least two years or have End Stage Renal Disease. Since the majority of the costs are paid by the working citizens in the form of payroll taxes called Federal Insurance Contributions Act, the insured is not responsible for the premium costs. Part A and B were two parts of Medicare originally but now the program has expanded to four parts. The author will discuss the differences in Parts A, B, and D. Medicare Coverage Part A Medicare Part A is often called the hospital insurance because the coverage is primarily directed at hospital services. Part A covers inpatient care in a hospital, skilled nursing facility (SNF) and “Religious Nonmedical Health Care Institutions” ("Medicare Handbook," 2012, p. 27). In addition to this, Part A covers Home Health and Hospice care. This coverage includes all meals, a semi private room, medications administered during the inpatient stay and general nursing. The deductible that must be paid by the patient in 2013 is $1184.00. This amount covers days 1-60 in the hospital. The patient’s responsibility for charges for days 1-60 in the hospital are $1184.00 ("Medicare Handbook," 2012, p. 30). After a patient has been admitted for a minimum of three days as an inpatient for a medically-necessary condition, they are eligible to be transferred to a SNF if daily skilled care is required. Examples of skilled care are daily physical therapy and intravenous medication. There is no cost to the patient for the first 20 days at a SNF. The patient is responsible for $148.00 per day for the 21st through the 100th day and then for all costs after the 100th

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