The Centers for Medicare & Medicaid Services (CMS), a branch of the Department of Health and Human Services (HHS) , is the federal agency that runs the Medicare Program and monitors Medicaid programs offered by each state.In 2011, Medicare covered 48.7 million people.Total expenditures in 2011 were $549.1 billion. Medicare Part A (Hospital Insurance) benefits, like inpatient hospital care, skilled nursing facility care, home health care, and hospice care. 2  Medicare Program administration, like costs for paying benefits, collecting Medicare taxes, and combating fraud and abuse.