as the nation tales health care reform, manhave suggested usg medicare as a cost-saving model. so this week, 're looking at the program, the progress 's ma, and the challenges it still faces. first, here's a quick cour on the basics omedicare. medicare is thfederal health inrance program for people 65 and older. the program cors about 45 miion americans including peop younger than 65 with permanent disabilities. medicareas originally set up to provide hospital and dical insurance. but no prescription drug coverage. today, the pgram h four parts. parts "a" and "b" e medicare's hospal and medical insurance. part "c" is the medire advantage progm. an option lettinpeople sign up foprivate health insurance plans that provideedicare benefits part "d" is thvoluntary prescrtion drug benefit signed into law in 2003.r th year, medicare costs are expected to totaalmost half a trillion dollars oabout 13% of the deral budget. even if you're not on medica there'a good chance you're paying for it. 41% its funding comes from payroll taxes. th money is put into a trust fund that pays for befits