Medicare 101

Monday, July 27, 2009

Medicare

Medicare turns 44 years old on Thursday. The government-managed health insurance program for seniors has also been much discussed during the recent health care reform debates. So, NBR thought it the right time to bring you a week of analysis of Medicare. Tonight, we begin with a look at the basics of the program. Learn more Medicare basics below.


MEDICARE HISTORY

* 1965 - President Lyndon Johnson signs the Social Security Amendments Act into law, creating both Medicare and its counterpart, Medicaid. Former President Harry Truman, who had proposed a national health insurance plan in 1945, became the first person to enroll in Medicare.
* 1972 - Medicare coverage is extended to people with permanent disabilities.
* 1976 - Medicare begins to offer HMO options to recipients.
* 1997 - The Medicare+Choice program (Medicare Advantage) is enacted. It is refined over the next three years.
* 2003 - President George W. Bush signs the Medicare Modernization Act into law, adding a prescription drug benefit to Medicare.

MEDICARE BASICS

Who does it cover?

* People 65 and older
* People younger than 65 with permanent disabilities
* A current total of about 45 million Americans

How is it structured?

* PART A: Hospital insurance
* PART B: Supplementary Medical Insurance
* PART C: Medicare Advantage
* PART D: Prescription drug benefit

MEDICARE PART B PREMIUMS - Historical

The following data was obtained from a September 14, 2004 report issued by the Congressional Research Service of The Library of Congress.

Medicare Monthly Part B Premiums
YEAR
PART B PREMIUM
1966
$3.00
1970
$5.30
1974
$6.70
1978
$8.20
1982
$12.20
1986
$15.50
1990
$28.60
1994
$41.10
1998
$43.80
2002
$54.00
2005
$78.20

External Links/Articles*

* AARP
AARP is a nonprofit organization "dedicated to making life better for people 50 and over." This links to the "Insurance & Medicare" section of the AARP website. The site includes links to guides called, "Get Started with Medicare" and "Choose the Right Medicare Plan for You."
* Kaiser Family Foundation (KFF)
KFF is "a non-profit, private operating foundation focusing on the major health care issues facing the U.S., as well as the U.S. role in global health policy." This links to the "Talking About Medicare: Your Guide to Understanding the Program, 2009" section of the foundation's website.
* Medicare.gov
Medicare.gove is the official U.S. government website offering information about Medicare, Medicare health plans, and more.

*Clicking these external links will take you off the NBR web site on PBS.org. NBR has no affiliation with these sites.