Part A is Hospital Insurance and covers cost associated with confinement in a hospital or skilled nursing facility. (see Medicare Part A)

The Medicare Program

Medicare is a health insurance program for:

• People age 65 or older.
• People under age 65 with certain disabilities.
• People with End-Stage Renal Disease (permanent kidney failure requiring dialysis or a kidney transplant)

The Original Medicare Has Two Parts

Internal Revenue Code 125 allows an employer to implement an employee benefit plan which allows employees to se1ect the benefit programs they prefer.

The plan offers two or more options and the employee chooses the option most appropriate for him or her. Because of the "menu" of benefits available, the plan is referred to as a "Cafeteria Plan".