Personal Finance 1st Edition by Jack R. Kapoor

Exercise 22

1 What are the two sources of government health insurance?

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2 What benefits do Part A and Part B of Medicare provide?

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3 What is medigap, or MedSup, insurance?

Action Application Visit www.medicare.gov and describe the changes that have been made in the hospital and medical insurance provided by Medicare.

Step 1 of 3

1) Sources of Government health insurance:

The two sources of government health insurance are Medicaid and Medicare.

Medicaid –It is administrated by each and every state within certain guidelines and broad federal requirements. It is financed by both Federal Reserve and respective state. It formed in order to provide medical assistance to group of people or category of people who are eligible to receive any payment from one of the cash assistance program.

Medicare –It is a federal health insurance program for old people who are of age 65 or above. It also covers for people with certain permanent disability and kidney failure patients. Health Care Financing Administration administrates this program. Any assistance regarding Medicare including application form, filing claims by the beneficiary can be obtained from the Local Social Security Administration.