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 Medicare: Do You Know All You Should? As it is currently prescribed, Medicare has two parts and each part has its own set of rules. Part A governs the provisions under which acute care in hospitals is rendered and also allows limited coverage for skilled nursing care, home care and hospice care. Part B governs all of the coverages and limitations dealing with physicians, outpatient care, all types of diagnostic tests, and all medical treatment. Part A is paid by employer and employee contributions. Part B is paid by general tax revenues from the United States federal income tax in the amount of 75%. The remaining 25% portion is paid in the form of a set monthly Medicare premium paid by the eligible participants.
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