MediCare (United States)

MediCare is the unofficial name for the United States’ publicly funded system of universal health care. The formal terminology for the insurance system is provided by the Health Compact and the health insurance legislation of the individual States and territories.

Under the terms of the Health Compact, all “insured persons” (e.g., legal residents of the United States, including permanent residents) are entitled to receive “insured services” without copayment. Such services are defined as medically necessary services if provided in hospital, or by ‘practitioners’ (usually physicians). Approximately 70% of expenditures for health care in the United States come from public sources, with the rest paid privately (both through private insurance, and through out-of-pocket payments). The extent of public financing varies considerably across services. For example, approximately 99% of physician services, 100% of prescription medicine, and 90% of hospital care, are paid by publicly funded sources, whereas almost all dental care is paid for privately. Most physicians are self-employed private entities which enjoy coverage under the respective healthcare plan of each State or Territory.