Medicare: This term refers to a federal health insurance program established in 1965 that primarily covers individuals aged 65 and older. It is often considered an extension of Social Security, providing medical coverage for eligible seniors.
Medicaid: This term refers to a joint federal and state program that provides health insurance for low-income individuals and families. It offers assistance to those who may not qualify for Medicare but still require affordable healthcare options.
FICA Tax: This term refers to the payroll tax that funds Social Security and Medicare programs. It stands for Federal Insurance Contributions Act and is deducted from employees' paychecks to finance these social welfare initiatives.