The government pays for healthcare for retirees.

They are bilking the government, not the individual. They actually prefer it that way since there isn't anyone checking on them.

I didn't think that Medicare was that generous.

It's for people who are destitute. They insist you spend all your own money first, and then you are covered fully for everything, with a small monthly allowance from social security.

Providers are happy to help you spend all your own money, and then be fully covered.

That's Medicaid, I think. Medicare coverage for old people is much more limited.

But I do agree that fraudulent exploitation of Medicaid and Medicare by the medical industry is all too common.

Well, your heirs/estate would be still liable for any debts you incur?

Heirs aren't liable for debt, unless they've cosigned on loans.