I found an interesting video at http://youtu.be/693XQSujAh8 … So I briefly summarized it for my History buff followers and those of you who are interested in how Medicare became part of our daily lives:
Because of the depression the elderly were so dependent on their children, they were not able to pay for their hospital and doctor visits. Something had to be done.
1945 President Truman proposed national health insurance regardless of residence, station, or race everywhere in the United States. Those efforts failed.
1960 Kerr Mills law enacted that states would receive federal dollars for older poor people. However, only 32 states adopted that bill. It was not successful either because it didn’t really provide sufficient coverage people could afford.
1965 Medicare was passed. Medicare’s main principles were to provide coverage to all people 65 and over regardless of income and health status. It prohibited any federal interference in the practice of medicine. It covered hospital & doctor visits and paid providers for each service given to a patient. 1 million people enrolled the first week. And since only integrated hospitals could be reimbursed for Medicare expenses, Medicare ended racial segregation in hospitals. Other fun facts: Ex-president Truman is the first to enroll in Medicare. Medicare Part B premium is $3 per month.
1988 Congress passed the Medicare Catastrophic coverage act which set limits on out-of-pocket spending and added a drug benefit. It also required only people on Medicare to finance the new benefits. This made a lot of people upset.
1989 Congress repeals the Medicare Catastrophic Coverage Act including the out-of-pocket limit and drug benefit.
1992 Physician services payments are based on fee schedule.
1995 Medicare Officials warn congress that Medicare will not have enough money to pay all hospital bills beginning in 2001.
1997 Congress passes Medicare+Choice under the Balanced Budget Act to reduce Medicare spending growth. Some provisions prove to be so financially restrictive when regulations are unveiled that Congress is forced to revisit the issue in 1999.
1998 Medicare Officials say financial outlook much improved.
1999 Congress “refines” Medicare+Choice and relaxes some Medicare funding restrictions under the Balanced Budget Refinement Act of 1999.
2000 Medicare Part B premium is $45.40 per month.
2003 Congress passes the Medicare Modernization Act adding a new prescription drug benefit offered by private plans only.
2006 Medicare Prescription Drug Benefit aka Part D takes effect.
2010 Affordable Care Act signed into law which added preventative care, reduced Medicare spending growth & extended solvency of Medicare Trust Fund. It reduced Medicare payments to providers, such as hospitals and home health agencies, and it reduced payments to private insurance plans. It also increased Part D premiums for higher income beneficiaries and phased out the doughnut hole.
2011 First Baby boomer enrolls in Medicare. Retirement of he Baby Boom generation, by 2030 is projected to increase enrollment from 48 million to more than 80 million. Medicare spending is projected to increase from $560 billion in 2010 to just over $1 trillion by 2022. They also say that twenty percent of baby boomers alone have five or more chronic conditions which will further add to the future cost of health care (www.cms.gov, 2012)
2012 Medicare Officials estimate that Medicare will be able to pay all hospital bills until 2024. Medicare Part B premium is $99.90
I hope you enjoyed this journey back through history! Visit www.cms.gov and www.medicare.gov for more facts and information.