Medicare is a federal insurance program paid out of Social Security deductions. All persons 65 or older who have made Social Security contributions are entitled to retirement benefits. Certain people younger than age 65 can also qualify for Medicare, including those with disabilities and permanent kidney failure.

Medicare has several parts, including Hospital Insurance (Part A) and Medical Insurance (Part B). Financial need is not a base for Medicare. Anyone who meets the age, disability and/or coverage requirements is eligible. Medicare does not pay for all medical expenses and is usually supplemented with private insurance. After three days of prior hospitalization, Medicare will pay up to 100% for the first 20 days of skilled nursing care. For the 21-100 days, the patient will pay a co-payment. The premiums and co-payments increase every year. There will be no Medicare coverage for nursing home care beyond 100 days in any single benefit period.

Medicare only pays for “skilled nursing care” and does not pay for “custodial care,” and the average stay in a nursing home under Medicare is usually less than 24 days. Thus, few can look to Medicare to pay for substantial long-term care costs.