People Pays Medicare Paid Government Employer Plan Pharmacy

In the U.S., people who are 65 years old or older can get health insurance that is paid for by the government. This program is called "Medicare." Medicare covers, or pays for, people to go to the doctor and to stay in a hospital if they are ill. Sometimes, people need medical treatment that isn't covered by Medicare. In that case, people must pay for that treatment themselves. Since January 2006, Medicare also covers some prescription drugs.

The government pays for Medicare by collecting taxes. A large of part of Medicare is paid for by "payroll taxes." "Payroll" are the wages, or money, an employer pays to a worker. Each time an employer pays money to a worker, payroll taxes are taken out and given to the government. The employer pays for half and the worker pays for half.

The government has another insurance plan called "Medicaid." This is a plan for people who have low income, or who don't make very much money, and for people with disabilities, or people who have physical or mental problems. This plan is paid for by the federal, or national, government and by each state. Each state decides how to manage this program so whether you are eligible, or can use this plan, can change if you move from one state to another.