Medicare is federal health insurance, mainly for people 65 and older and for some younger people with disabilities. Workers pay toward it through the Medicare part of the FICA payroll tax, long before most of them use it. It is not Medicaid, which is based on income, and it is not the health plan an employer offers during working years.

Related Lessons:

• Click Here for our lesson on Health Insurance
• Click Here for our lesson on Types of Insurance
• Click Here for our lesson on Payroll Best Practices
• Click Here for our lesson on Public Financial Assistance Programs
• Click Here for our lesson on The Ultimate Employee Guide