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Definition Medicare - a national medical insurance program that is part of the Social Security Act, covering medical, hospital and drugs for older people.

Application in Divorce Like Social Security, Medicare has dramatically improved the lives of older Americans. Medicare is now nearly universal, and although it does not cover all hospital and medical expenses, it gives significant protection for people who income is normally reduced because of retirement.

Employers and workers split the 2.9 percent Medicare tax, each contributing 1.45 percent. Unlike FICA, Medicare is paid on all earned income without any ceiling, and self-employed people pay the full 2.9 percent on all their earned income.

See FICA and FIT.

Resources: 42 U.S.C.A. § 1395 et seq.

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