What is a federally funded and administered program of health insurance?

The correct answer is Medicare, which is a federally funded and administered program of health insurance primarily designed for individuals aged 65 and older, as well as some younger people with disabilities or specific diseases. Medicare is divided into various parts that cover different aspects of healthcare services, including hospital insurance (Part A) and medical insurance (Part B). It is important to recognize that Medicare is funded by federal sources, relying on both payroll taxes and general revenues, and it is managed at the national level, making its regulations and benefits standardized across states.

In contrast, Medicaid is a joint federal and state program that helps with medical costs for certain individuals with limited income and resources, where states have significant control over program details. TRICARE provides health coverage for military personnel, their families, and retirees, and it is also a government program but not strictly federally funded, as it operates under different regulations. Out-of-Pocket Insurance refers to the expenses that individuals pay on their own for healthcare services and is not a program of health insurance at all. Thus, understanding the specific characteristics and governance structure of Medicare clarifies why it is recognized as a federally funded and administered program.