Facts and stats about Medicare that people should know

Image source: medicare.gov

Medicare is a social insurance program in the United States that has been around for half-a-century. As a program administered by the government, Medicare is financed through taxes and premiums which people pay for, mainly through employment. Here are a few notable facts and figures people ought to know about Medicare in the United States:

• There are over 52 million people in the United States with Medicare. Out of that number, more than 43 million are 65 years old and older, while the remaining are below 65 and/or disabled.

• A little under 500,000 Medicare users are End-Stage-Renal-Disease, or ESRD patients.

• Around 98.5 per cent of the elderly have health care insurance today.

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• A fourth of Medicare users have an estimated yearly income of below $14,000, while five per cent rake in over $93,000 a year. Half of Medicare beneficiaries earn below $25,000 annually.

• Generally, everyone over 65 years old, who has lived (legally) in the United States for five years can have Medicare. Disabled persons under 65 are also eligible, as long as they also have Social Security Disability benefits or Railroad Retirement Board disability benefit.

• There are four parts to the benefits – hospital or hospice insurance, medical insurance, Medicare advantage plans, and prescription drug plans. To pay for Medicare, some costs such as premiums and Medicare supplements have to be paid out-of-pocket.

Delos H. Yancey III is the chairman, president, and CEO of State Mutual Insurance, a company that provides Medicare Supplement insurance with community service as its main goal. He is a Certified Financial Examiner, a Certified Insurance Examiner, and a fellow of the LIMRA Leadership Institute. For more on insurance and Medicare supplement, visit this website.