Medicare History

The Medicare program was instituted with the passing of the Social Security Act of 1965, and it has been providing health care insurance to citizens over the age of 65 - and other Americans in special circumstances - ever since.

President Lyndon B. Johnson signed the Social Security amendment on July 30, 1965.

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Laying the Groundwork for Medicare Health Insurance Legislation

The movement to establish a health insurance program for Americans over the age of 65 began in 1945 when President Harry S. Truman appealed to Congress for a law that would establish a national health insurance regime. At the time it was a very controversial issue, because it took the good part of twenty years for Congress and involved parties to debate whether or not it was a feasible proposition.

Although President Truman gave up his idea of universal coverage by the time his presidency came to an end, the social security administrators and various other parties had started entertaining the idea of providing health care to the beneficiaries of Social Security.

Medicare Coverage Continues to Evolve and Expand

When the Medicare and Medicaid law was passed, the Medicare Part B premium was set at $3 a month. By the early 1970s, the legislation had evolved to include disabled citizens and those with end-stage renal disease (regardless of age) in the list of people eligible for Medicare coverage.

A decade later, the Medicare program included hospice benefits, but only on a temporary basis. Changes were also made to the Medicare legislation to cover federal employees, including the U. S. President and members of Congress. By the late 1980s hospice benefits had been permanently integrated into the Medicare coverage. Medicare coverage was gradually expanded with piecemeal additions.

Medicare Advantage Brings In The Private Health Insurance Market

In 1997, Congress enacted a major expansion of and change to Medicare, with the "Medicare+Choice" Part C amendments to the Balanced Budget Act. Due to certain discrepancies in the act, the legislation for Medicare+Choice had to be further expounded by the Balanced Budget Refinement Act of 1999.

By the turn of the century, the Medicare+Choice legislation was finalized and the premium for Part B had risen to just over $45.

Medicare+Choice later became known as "Medicare Advantage" plans, as changes were integrated into the program. The Medicare Advantage plans allowed members to make use of private insurers instead of receiving their benefits only from the government, and were meant to give the same standard of cover that the original Medicare Parts A and B did. Certain Medicare Advantage plans also made for the provision of prescription drug coverage, known as Medicare Part D.

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