MAJOR MEDICAL COVERAGE
First, let me explain how health care works for those who are not on Medicare.  People under the age to qualify for Medicare in order to be covered must purchase what is called a "major medical" plan.   Those plans may be either individual major medical plans or group major medical plans.  If one is insured through his employer, that employer has either negotiated with an insurance complany to ensure all his employees or he has self-insured the employees himself.  The company pays part of the cost of the coverage, and the individual pays a share of it.    If one comes into either group without previous coverage, he still probably will not have his pre-existing conditions covered. 
To save on costs, many companies offer only the health maintenance organization (HM0) to their employees.  We all have heard the horror stories regarding HMO's, who often will not cover new or experimental treatments.   Some plans may be Preferred Provider Organization (PPO's). One has a wider base of doctors with a PPO, but both plans penalize a patient who wishes to seek treatment outside either his HMO or his PPO, forcing the patient to pay more of his out-of-pocket expense.  Generally, these plans have a  yearly deductible, then pay 80% of the cost up to a certain level of expense at which time they pay 100% of the cost, so long as one stays within his network of doctors.  Some also have restrictions of how long they will pay before the policy is used up.  Small business often have trouble providing coverage for their employees.
If one suffers a catastrophic illness, he may be forced to quit work, as I was when I was diagnosed with cancer.  He then loses his health coverage, which forces him to switch to coverage under the Consolidated Omnibus Reconciliation Act (COBRA) .  That allows him to keep his coverage for an additional 18 months.  The patient, however, must pay the full premium.  I had to do this when I was ill.  I began by paying about $350 per month under my COBRA plan. 
 Eighteen months later I was paying $1125 per month just to keep myself insured. I had no choice but to pay it;  Unfortunately,  that along with my share of my medical bills took every ounce of money I had planned to put aside for my retirement years.  
 Thank goodness just about the time my COBRA expired, I was able to get on  disability benefits, which qualified me for Medicare. 
For those who are self-employed, such as farmers or ranchers, their option is to purchase individual coverage.  I used to dread having an appointment, and I had many of them, with self-employed families who were desperate for health coverage.  These individual plans are outrageously expensive,go up every year, and exclude for life every pre-existing conditon of the patient.  If a patient, for instance, has EVER had surgery or taken medication for any condition, he just automatically gets an exclusion for that condition.  A common problem is high blood pressure, which excludes coverage for any condition that might arise from or be tied to high blood pressure.  Just think of all the exclusions that triggers.  That is why so many farmers, ranchers, and self-employed small businesses often have no coverage at all.

MEDICARE COVERAGE

Once a person qualifies either by age, retirement, or disability for medicare coverage, his benefits change.  Medicare is a government program that offers coverage for most conditions to the elderly and the disabled.

Medicare is divided into three parts--Part A, Part B, and Part D.  It too has premiums and deductibles, however.  Each year these deductibles increase.

Part A: 

 Part A of Medicare is free to any individual who has paid in social security as a worker.  It covers hospitalization and skilled nursing care.  The patient's deductible for 2008 is $1024 per benefit period (60 days).  Then the patient's hospitalization is paid in full for the cost of a semi-private room.  However, Medicare has a schedule for how long one may be hospitalized for any given illness. 

 Skilled nursing care in a long term care facility is covered in full for twenty days following a hospitalization of at least three days.  The next 80 days are also covered but at a significantly less amount with the patient having to make up the difference.  This is ALL the coverage one has for long term care under Medicare.

Part B: 

 Part B of Medicare has a standard premium in 2008 of 96.50 per month for individuals making less than $82,000 per year.  For those making more, it is indexed up to a maximum of 234.40 per month based on income. 

Part B covers medical expenses, including physician charges, tests, x-rays, MRI's, CAT and PET scans, lab fees, emergency room care, ambulance service, if medically necessary, etc., when administered on an out patient basis.  Medicare will pay 80% of these fees while the patient must pay the balance, usually 20%, but it can be more if the physician does not agree to accept assignment from Medicare.

Part D:

Part D covers prescription drug coverage.  Premiums can vary from $24 to $65 dollars per month, depending on which plan one chooses.  Usually, the higher the cost the less out-of-pocket one has.

Generally for the first $2400 of prescription drug costs each year,  Medicare will cover the cost less a deductible of an average of $2-$5 for generic drugs and $20-$29 for non-generic brands.

After one incurs $2400 in covered expenses, the drug plan has what is called a "donut hole", during which time the patient is responsible for the entire cost of the next $3600 of his prescription drugs.  Then the plan will kick back in again, paying all but $2 on generic and $5 on non-generic.

Tomorrow, how each candidate, if elected,  plans to address the health issue.