History helps us understand the present day. How we got here, what we’ve learned, and how we can avoid making the same mistakes.
Millions of Americans rely on Medicare, the federal health insurance program for people aged 65 and up. This program has been around since the mid-1960s, and it has changed quite a bit over the years.
The Fussell Group Insurance Advisors
shares a history timeline of Medicare. It took hard work from multiple Presidents, but in 1965, seniors were officially able to access affordable healthcare.
Did You Know?
Medicare comes from the combination of the words “medical” and “care.”
Before Medicare, only about half of seniors over 65 were insured. Coverage wasn’t easily available and the prices were very high.
1935 – The New Deal
It goes all the way back to 1935. Franklin D. Roosevelt’s Social Security Act passed, but there wasn’t a universal health insurance element because of political opposition from both sides of the aisle (and organized medicine).
1948 – Health Care Reformer Submits a Proposal
Harry S. Truman was the first president to advocate national health insurance in every respect. His proposal was directed as socialized medicine. Then, JFK’s administration pursued modest plans to cover the elderly, but Congress stood in their way.
1965 – Medicare Started
Medicare was born in 1965 when President Lyndon B. Johnson signed the Social Security Amendments — the bill that later became the Medicare and Medicaid programs, funded by the federal government. Medicare coverage included Part A (hospital) and Part B (physician) services for those 65 and older. Medicaid covered low-income children and the relatives who took care of them.
1972 – Medicare Eligibility Expanded
In 1972, Medicare eligibility was given to people under 65 with long-term disabilities and those with ESRD, thanks to the Social Security Amendments. At this time, Medicare added more coverage for physical, speech, and chiropractic therapy benefits.
1982 – Hospice Benefit Added and Private Plans Offered
The Tax Equity and Fiscal Responsibility Act added a Medicare hospice benefit and allowed beneficiaries to decide to get benefits from private health plans. It also set limits on hospital payments — per case — and called for the development of a payment system for inpatient hospital services. The hospitals would get a fixed payment amount for every kind of case.
1988-1989 – New Benefits Added, Efforts to Control Costs
The Medicare Catastrophic Coverage Act of 1988 established an outpatient prescription drug benefit and placed a limit on people’s out-of-pocket costs. However, the law’s major provisions were revoked a year later.
The Omnibus Budget Reconciliation Act of 1989 changed the way doctors were paid by Medicare and promoted more efficient medical care. In the earlier payment system, physicians were reimbursed based on their typical charges.
1997 – Payment Changes Expanded
The Balanced Budget Act of 1997 put a future payment system in place for outpatient services. The act also created Medicare Part C, which let beneficiaries access more types of private health plans.
Related Post: What to Look for in a Medicare Advantage Plan
2003 – A Drug Benefit Is Coming
George W. Bush signed the Medicare Modernization Act, which set up a prescription drug (Part D) benefit for all Medicare beneficiaries to use — starting in 2006. The Medicare+Choice program was also replaced with Medicare Advantage, so more types of private plans were available.
Related Post: Medicare Part D – What Is a Plan Formulary?
2010 – Better Coverage, Lower Costs
2010 was an important year. President Barack Obama signed the Affordable Care Act (ACA), which enhanced Medicare coverage of preventive care, reduced liability for Part D costs, initiated payment system reforms, and created the CMS Innovation Center.
The ACA also added new protections for people with preexisting health conditions. Overall, it was much easier for small businesses and individuals to get affordable health insurance.
By 2013, 52.3 million Americans were covered by Medicare.
What part of Medicare’s history do you find most interesting?