Medicare is a health insurance program funded by the federal government.

The money is generated from payroll tax contributions and general tax revenues. There are two parts to Medicare and each covers different types of expenses. Part A, ad it is commonly referred to, is hospital insurance. It covers expenses for treatment of an illness while you are a patient in a hospital or a skilled nursing facility. It also pays for hospice care and for home health care. Part B, is medical insurance, and it pays for doctor expenses and a variety of other medical services. You do not have to be a patient in a hospital to have your medical expenses covered by Part B of Medicare. Both parts make up Medicare, but you can have one without the other. Anyone who is eligible for the hospital insurance will also be eligible for the medical insurance, which carries a monthly premium.