All employee's in the USA have a tax taken out of their wages, this tax is called Medicare. It is a mandatory tax which is payable by all employee’s and their employers and it is usually taken at source on all gross income at around 1.45 percent. The employers are also obliged to match this tax and also put in 1.45 percent of the tax too. So whatever the employee puts in out of their wage ie $25 dollars the employer puts in the same, meaning that there is $50 dollars that goes into the pot. The Medicare system is their to provide the individual payer coverage for the disabled and elderly on healthcare. If you are self employed you are required to provide both percentages of tax, meaning that you pay around 2.6 percent of your gross pay towards Medicare. It is essential that all Americans have this tax, as unlike the United Kingdom, the USA does not benefit from an NHS system where all healthcare comes free. Each doctors visit and visit to the hospital must be paid for out of an insurance. Without this insurance many people would find themselves struggling. Although there are some citizens in the USA which are well below the poverty level, who have no health insurance at all.

Like the United Kingdom the USA has also seen a huge rise in people living longer, and the need for good nursing homes at a premium. With the baby boom era now reaching retirement age it has never been more important to provide good healthcare. As soon as an American citizen turns 65 they are eligible for Medicare. The individual with Medicare has a seven month period in which they can enrol for Medicare and this begins the day after the individuals 65th birthday. If the enrolment takes place within this seven month period then it can be done for free. If however, enrolment takes place after this seven month period then a fee will be applied as well as penalties. Once enrolled the individual can decide whether they are enrolling for just part A of the insurance, this offers basic coverage. The part A coverage of the insurance is definitely the cheaper option and is possibly the most popular. However by opting for both part A and part B offers a supplemental coverage. Which ever health insurance option you choose it is always best to read up on the information before hand, to ensure you have the best deal.