What is Medicare Part A

As retirement approaches, many individuals are presented with a great many choices and decisions regarding their health insurance. Available materials may leave more questions than answers for many first-time Medicare applicants, many of whom may be wondering, "What is Medicare Part A, anyway?" To answer that question, it is necessary first to examine the origins of Medicare and the intent behind its creation.

Medicare was first suggested in 1945 by President Harry Truman, who envisioned a national comprehensive health insurance plan that would provide universal coverage for all Americans. Truman’s plan was regarded as socialist at the time of its proposal, and was shelved for twenty years until the signing of Medicare and Medicaid into law by President Lyndon Johnson as part of the “Great Society” domestic initiative. Medicare was to be paid for through contributions by employees during their working years. Fittingly, Harry Truman was the first person to sign up for Medicare when it became available. Initially, only Parts A and B were available for Medicare recipients; it was not until 2003 that the Medicare Prescription Drug, Improvement, and Modernization Act was enacted adding Part D prescription drug benefits as an option for Medicare patients.

So, what is Medicare Part A exactly? It is the hospital insurance portion of the benefits offered through Medicare, and is often referred to as “basic Medicare” because individuals who have forty quarters of creditable employment pay no monthly premiums for this coverage. Medicare Part A is not free; it is paid for by contributions made by employees during their working years. Medicare Part A does not pay for all costs related to a hospital stay or catastrophic illness; specifically, it covers blood transfusions, hospital visits of at least three days up to a lifetime 190 day maximum, stays in a skilled nursing facility or nursing home care, home health services, and hospice care. From its inception in 1965, Medicare Part A coverage has been intended to protect disabled and retired individuals from bearing the brunt of catastrophic health care costs without adequate insurance, ensuring their financial security as well as their physical health.