Describe the operation of the Medicare program. Discuss who is ...

[yoooooman]

Describe the operation of the Medicare program. Discuss who is covered under the program, how it is financed and the distinction between Part A and Part B of the program.
 
  What will be an ideal response?

Question 2

Income taxes tend to be favored over sales taxes _____.
 
  a. because of the excess burden on income taxes
  b. on the benefit principle
  c. on equity grounds
   d. as long as income as defined using the Haig-Simons definition

[chinwesucks]

Answer to Question 1

Medicare was established in 1965 and provides health care benefits to over 40 million elderly Americans. The financing of the Medicare program depends upon the distinction between Part A and Part B of the program. Part A covers hospital care for the elderly and is financed through a payroll tax. Everyone who is eligible for Medicare receives Part A coverage. Part B covers physician care services and is financed through monthly premiums and federal government general fund revenues. Part B is voluntary and only those interested in coverage need make the monthly premiums to receive coverage. Because of the high subsidy out of general revenues, however, it is a good deal and thus most eligible individuals opt-in.

Answer to Question 2

c