Medicare Overview
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Medicare Overview

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December 1, 2011

Part A is often called hospital insurance because it pays for care in the hospital. Part A also pays some of the costs of stays at skilled nursing facilities, or health care at home. Finally, Part A also covers hospice care for people who are terminally ill. It is funded by the payroll tax (FICA) that is deposited into the Hospital Insurance Trust Fund.

Part B pays for doctor services, outpatient hospital care, and home health care that Part A does not pay for.

Get more information on the basics of Medicare in this fact sheet.

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