Chapter 8

Public Health Insurance Plans

Text 3

The largest public insurance plans in the USA are popularly known as Medicare and Medicaid.

Medicare – elderly individuals

Medicare covers the expenses for people over the age of 65 as well as some disabled persons under the age of 65. Part A of this plan pays for hospital bills, and part B for doctors’ services. The first part is free for almost all of its users, but the second part is voluntary and based on the payment of a premium.

Medicaid – poor families

Medicaid is a public insurance for the families of the poor, but not all low-income families are eligible, i.e. get such public support.

The degree of coverage for illness expenses given to each family, and the number of poor families who are eligible, varies from state to state. Consequently, there is a clear difference between the degree of support the poor families receive in the different states.

Individuals classified as poor do not get any coverage unless they have acquired extremely large medical bills.

Not fully covered

So through the public health care the state pays to a certain extent for elderly people and a certain number of poor families, while individuals up to the age of 65 living outside the ordinary family pattern, have to cater for themselves.