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Definition: Hospital Insurance Trust Fund
According to The United states Health insurance program, Medicare – this trust fund is a section of Part A of this program. According to this fund, medical people of age 65 and older are provided with medical facilities with some registered hospital for free up to a certain time if the patient falls under the conditions set by this trust.
This fund is looked after by a board of trustees that report to the government on a yearly basis. Funds in this trust are raised by the payroll taxes taken from current employers and workers.
Few conditions of this fund are:
• This fund covers a maximum stay of 90 days in a hospital.
• 2Midnight rule: If a physician admits a patient in a hospital care for more than 2 mid nights then only he is eligible for Plan A program
The main apprehension with this fund is that with time, the Nation's economy will not sustain this program. The tangible trust fund is an account method, since there is no transaction of money into or out of the fund. Income to the trust fund is credited in the form of government securities which are interest bearing. Outlays for services and organizational costs are logged against the fund. If the fund has a balance, the Treasury is permitted to make payments.
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