What does Medicare primarily fund?

Medicare is primarily designed to provide health insurance coverage for seniors aged 65 and older. It plays a critical role in the U.S. healthcare system by ensuring that this age group has access to necessary medical services, including hospitalization, outpatient care, and preventive services. The program is funded by federal government sources through payroll taxes, premiums, and general revenue, and it helps millions of older adults manage healthcare costs, which can become significant as people age.

While there are other programs available that assist low-income individuals and provide care for children or those with chronic disabilities, Medicare specifically targets the elderly population. This distinction is essential in understanding the various health insurance programs available in the U.S. Each program, including Medicaid, CHIP (Children's Health Insurance Program), and others, focuses on different demographic needs and coverage areas.