Medicare and Medicaid
What does 100 percent or 150 percent of poverty mean? The federal poverty level represents the level at which poverty or subsistence begins. Each year, the federal government determines this number based on inflation and other relevant factors. The federal poverty level guidelines are used as an eligibility criterion for federal, states and local government programs. 100 percent of poverty mean- an individual or household’s annual income is equal 100 percent of the federal poverty level. 50 percent poverty mean- an individual or a household earns 50 percent more than the federal poverty level. In 2012 for instance, the federal poverty level for an individual was $11,170, so an individual at 150 percent of federal poverty level earned $16,755. How are Medicare and Medicaid funded? Medicare is partially funded from payroll taxes, through the provisions of the Federal Insurance Contributions Act. The Medicare tax rate is currently 2. 9 percent-half withheld from employees’ pay and half provided by employers.
High-income social security beneficiaries are required to pay taxes on their benefits, some of which goes towards Medicare. All the money goes into a trust fund and are used to pay for beneficiaries’ health services. About one-fourth of Medicare part B is paid for by premiums and co-pays. Medicaid is a federal and state government program that helps cover health care cost for low-income Americans. It’s funded through Federal Medicaid Grants and states tax funds.
Medicare and Medicaid Essay Example
The total cost of the program was $458 billion in 2012. Reference: American Hospital Association (2012). Financial fact sheets: Underpayment by Medicare and Medicaid fact sheets, 2012 update. Retrieved on March 5, 2013 from www. aha. org/research/policy Lorain County Community Action Agency (2012). Eligibility Calculator: Federal Poverty Level. Retrieved on March 5, 2013 from www. lccaa. net/eligibility_calculator www. cthealthpolicy. org/pdfs/health_policy www. sharecare. com/questions