Overview Medicare and Medicaid Federal social insurance programs were created as part of the Social Security Act Medicare Covers the elderly (65+ years) Also covers ESRD 2 main parts Part A pays the hospital Part B pays physicians Part C are all-in-one plans Part D provides prescription drug benefits Medicaid For low income people Federal and state components Physician Compensation Capitation fixed amount of money per patient per unit of time over which services are rendered Fee-for-service physician is paid separately for each service rendered Salary fixed amount of money paid physician irrespective of services rendered