Medicare
n. a federal program of health insurance operated by the Centers for Medicare and Medicaid Services of the U.S. Department of Health and Human Services for those over 65, certain younger people with disabilities, and people with end-stage renal disease. Monies from payroll taxes and premiums from subscribers are deposited in trust funds to meet the expenses of the insured. Medicare consists of two basic programs: Part A includes inpatient costs and Part B provides supplementary medical insurance. Other options include a Medicare Advantage plan (Part C), in which medical services are covered by private health insurance companies in contract with Medicare, and an outpatient prescription drug plan (Part D).