What is Medicare?

Medicare serves as health insurance for eligible participants. Medicare was established by Title XVIII of the Social Security Act in 1965 to provide Federal Health Insurance for the elderly (age 65 and older), for the disabled (regardless of age) and for those suffering with end-stage renal disease. Unlike Medicaid, Medicare is not based on economic need. Medicare is considered a secondary payer (meaning that it is not primarily liable for the medical bills) with respect to medical expenses incurred as a result of an injury caused by someone else’s negligence. As a result, payments made by Medicare are called Conditional Payments and are made upon the condition that it will be repaid once payment is received from the primary payer (negligent party). This includes, but is not limited to, liability insurance (including a self-insured plan) and no fault insurance (medical payments coverage).