Medicare was designed as a universal health care program for individuals age 65 and older. This program is funded by Medicare taxes and general federal funding tax withholdings. Medicare is a federal-state partnership with the goal of providing medical insurance to poor and disabled seniors. Generally, all people who are 65 or older and eligible for Social Security will automatically qualify for Medicare. The Medicare program is made up of four components: Parts A, B, C, and D. Part A of Medicare covers hospital services for patients; Patients have the financial responsibility to cover a deductible equivalent to 1 day of hospitalization, after which the cost is covered 100% for a maximum of 60 days. This also includes nursing facilities, home care and hospice. Part B covers outpatient surgeries and office visits. This is an optional component of Medicare because this plan has a premium associated with it that is paid directly through your Social Security payments. Part C is known as Medicare Advantage and is a supplemental policy purchased directly by employers; one may be denied for health reasons depending on when the plan is acquired. Part D is prescription drug coverage eligible for all individuals who qualify for Medicare. Medicare beneficiaries choose which prescription plan they want and pay a corresponding monthly premium. Growing enrollment, new prescription drug benefits, use of Part B, and the availability of advanced technology have led to rising Medicare costs. Of all the factors that have contributed to rising Medicare costs, Part B uses have been a major cost driver. So far the Affordable Care Act (ACA) has done… half the paper… For people less than or equal to 133% of the FPL, starting in 2014 eligibility will be expanded to people who are 138% or less of the FPL. Additionally, the expansion will target more parents and extend to adults without children. Fore states that choose to accept the expansion mean they will have to cover more people in their Medicaid programs. The government will provide 100% funding for the first 3 years of Medicaid expansion; states will then have to figure out how to fund the program in the absence of federal funding. The stipulation with the Medicaid expansion is that after three years the state cannot change the program to not cover the people in the expansion. He claims that in financial ruin before the ACA, now with the expansion they will have to find alternative ways that serve the same purpose as Medicaid to reduce costs.