The United States is a large country, and a health system is just one of the many services you will find available. This is a confusing thing to navigate.
Here are some of our suggestions on how to understand America’s health system:
- The federal health system is called the Department of Health and Human Services. It is made up of three departments: the Department of Health and Human Services (HHS), the Department of Veteran Affairs, and the Department of Labor, among others.
- The states are under the jurisdiction of the National Governors Association (NGA).
- The Centers for Medicare and Medicaid Services oversees the National Health Insurance Programs (NHIPs) in all 50 states.
- The Health Resources and Services Administration (HRSA) is the federal agency responsible for overseeing the public health and medical services in the United States.
- Medicare is the federal health insurance program for individuals aged 65 and older and people with certain disabilities.
- Medicaid is a joint federal and state program for low-income Americans.
- The Veterans Health Administration is an organization that provides health care and health services to men and women who served in the United States armed services.
- The Department of Labor is responsible for ensuring that workers are protected against employment discrimination.
- The Department of Defense oversees all the services that the federal government provides.
- The Centers for Disease Control and Prevention (CDC) is a federal agency that provides scientific and medical information to the public.
The way that health services are organized
The federal government oversees health care in America. However, it does not do everything.
The states are responsible for overseeing the services they provide. Each state has their own Health Resources and Services Administration (HRSA), and they are responsible for providing some health services.
The federal government will also provide some services for an extremely small amount of the population. You will find these services at the Centers for Medicare and Medicaid Services (CMS).
What is Medicare?
Medicare is a federal health insurance program for people aged 65 years or older and people with certain disabilities.
The program provides health insurance and health services to Medicare enrollees.
Medicare parts A and B cover hospitalisation and medical care. However, it does not include long-term care, which is covered by parts C and D.
Medicare parts A and B are known as original Medicare.
Medicare Advantage is a combination of parts A and B, and it provides health coverage and health services to people who do not qualify for original Medicare.
What is Medicaid?
Medicaid is a federal and state program that is available to people who are eligible for Medicare. It provides health insurance and health services.
Medicaid enrollees receive care from a network of healthcare providers.
Who is covered by Medicare?
Medicare is divided into parts A and B.
Medicare Part A provides medical coverage. Part B covers healthcare services such as visits to the doctor.
You will need to have Medicare Parts A and B to be eligible for Medicare.
Where is Medicare provided?
Medicare Part A is provided in hospitals. It is provided in all states.
Medicare Part B is provided in all states. It is also provided in all states, but it is not provided in every hospital.
How much does Medicare cost?
A typical enrollee pays $1,408 per month in Part A and $471 per month in Part B, for a total of $3,948 per year.
If you do not have a high-income or high-deductible plan, you could save money by enrolling in a Medicare Advantage plan.
Medicare Part B costs the same as Part A no matter which plan you have. However, the monthly premium is higher. For example, the premium for a Medicare Advantage plan is $148.50 per month.
According to the CMS, in 2021, there were more than 2 million enrollees in Medicare Part B.
How much does Medicaid cost?
Medicaid is the government program that provides health coverage to people who are eligible for Medicare.
The cost of Medicaid is based on your income, and it is paid for by the federal government.
In 2020, the cost of Medicaid was $11.9 billion, which was 7.4% of the total cost of Medicare.
The cost of Medicaid was divided into three categories:
- The amount spent on nursing home care
- The amount spent on other Medicaid health services
- The amount spent on administration costs.
In 2020, the government spent $4.5 billion on nursing home care, $2.4 billion on other Medicaid health services, and $1.9 billion on administration costs.
In 2021, the government will spend $5.6 billion on nursing home care, $3.5 billion on other Medicaid health services, and $1.4 billion on administration costs.
Where are Medicare and Medicaid provided?
Medicare is provided in all 50 states. However, the states are under the jurisdiction of the National Governors Association (NGA).
The Centers for Medicare and Medicaid Services oversees the health insurance programs in all 50 states.
There are also several federal programs that are responsible for providing health coverage. These programs include:
- Children’s Health Insurance Program
- Indian Health Services
What is the difference between Medicare and Medicaid?
Medicaid and Medicare are both government-run health insurance programs. They are both provided by the government. However, Medicare is a federal program, while Medicaid is a state-run program.
Medicaid is also known as Medi-Cal, CHIP, or CHIP/Medi-Cal.
However, Medicare is the system for people who are eligible for Medicare.
Medicare is divided into parts A and B, and Medicaid is divided into parts A and B.
Medicare and Medicaid are both provided by the federal government.
Over to you
Find out how much your Medicare costs and what you can do to save what you can.
Medicare and Medicaid are both government-run health insurance programs.
Medicare is a federal program, while Medicaid is a state-run program.
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