All About Medicare
The History of Medicare
The history of Medicare dates back to the 1950s and 1960s when a growing number of elderly Americans were struggling to afford healthcare. Here’s a brief timeline of the major milestones in the history of Medicare:
1950s: The idea of national health insurance began to gain support among politicians and advocacy groups.
1960: Presidential candidate John F. Kennedy made healthcare reform a central issue of his campaign.
1965: President Lyndon B. Johnson signed the Medicare program into law on July 30, 1965, as part of the Social Security Amendments of 1965. Medicare provided health insurance to Americans aged 65 and older, regardless of income or medical history.
1972: Medicare eligibility was expanded to include people under 65 who had certain disabilities or end-stage renal disease.
1980s: Congress passed several laws aimed at controlling Medicare costs, including the creation of the prospective payment system (PPS) for hospitals, which established a set payment rate for each diagnosis.
1990s: The Balanced Budget Act of 1997 created Medicare Part C, which allowed private insurance companies to offer Medicare Advantage plans.
2003: The Medicare Prescription Drug, Improvement, and Modernization Act created Medicare Part D, which provided prescription drug coverage for Medicare beneficiaries.
2010: The Affordable Care Act (ACA) included several provisions aimed at strengthening Medicare, including expanding coverage for preventive services, closing the prescription drug “donut hole,” and implementing payment reforms to promote quality and efficiency.
Today, Medicare remains a vital source of health insurance for millions of Americans, and it continues to evolve as policymakers and healthcare providers work to address the challenges of an aging population and rising healthcare costs.You’re about to take the plunge into learning all about Medicare. It’s not going to be nearly as detailed as reading the Medicare website from front-to-back, but it will be deep enough for you to be able to select the right coverage when you talk with an insurance agent who specializes in Medicare.
As my disclaimer states, I am not an insurance agent. I was once, but I haven’t sold a Medicare policy in about 30 years. You’ll need to find an agency online or get a referral to one from a friend or relative who bought a Medicare Advantage Plan or Medigap policy within the past year.
What is Medicare?
Medicare is a federal health insurance program in the United States that provides health coverage to people who are 65 or older, as well as to certain younger people with disabilities or end-stage renal disease.
Medicare has several parts, including:
Part A: hospital insurance that helps cover inpatient hospital stays, skilled nursing facility care, hospice care, and some home health care.
Part B: medical insurance that helps cover doctor services, outpatient care, preventive services, and medical equipment.
Part C: also known as Medicare Advantage, it’s a type of Medicare health plan offered by private insurance companies that includes all the benefits of Parts A and B, and may include additional benefits like prescription drug coverage and vision, dental, and hearing services.
Part D: prescription drug coverage that helps pay for the cost of prescription drugs.
Medicare is funded through payroll taxes paid by workers and employers, as well as through premiums paid by beneficiaries and general revenue. Medicare provides critical health care coverage to millions of Americans, and understanding its various parts and coverage options is important for anyone approaching age 65 or dealing with health care costs in retirement.
How Much Does Medicare Cost?
The cost of Medicare varies depending on the specific part(s) of Medicare you enroll in and your individual circumstances. Here are some general guidelines:
Part A: Most people do not pay a premium for Part A because they or their spouse paid Medicare taxes while working. However, if you don’t qualify for premium-free Part A, you may have to pay up to $471 per month in 2022.
Part B: The standard monthly premium for Part B in 2023 is $164.90, but higher-income individuals may pay more based on their income.
Part C: Medicare Advantage plan costs vary by plan and by location. Some plans have a $0 monthly premium, while others may have a higher premium.
Part D: Part D costs also vary by plan, but the average monthly premium for 2023 is $32.74. Higher-income individuals may pay more based on their income.
In addition to premiums, there may be other costs associated with Medicare, such as deductibles, copayments, and coinsurance. It’s important to review your options and choose the Medicare coverage that best meets your needs and budget.