Medicare History

Medicare history dates back to 1945 when Presidenta major overhaul of the entire Medicare and Medicaid
Harry Truman first asked Congress to establish asystem so that prescription drugs were covered; this
national health insurance scheme. His plan was for allwas repealed in 1989. 1992 physician services based
people to receive comprehensive and prepaid medicalon fee schedule were added and in 1997
insurance through the Social Security System. As theMedicare+Choice was enacted before being refined in
years passed, the field of recipients was narrowed1999.
until it was only social security recipients who stood toThe next major overhaul of the Medicare system was
benefit. When it was discovered that only 56% ofwhen George W. Bush signed the Medicare
people aged 65 or older had health insurance,Prescription Drug Improvement and Modernization Act
President John F. Kennedy lobbied for health insuranceinto Law on December 8 2003. This was a landmark
for the aged.legislation that offered better benefits, prescription drug
However, the Medicare program provision of socialbenefits, and increased health care choices for seniors
health care for the poor and aged did not become lawand people living with disabilities.
until 1965. On July 30 President Lyndon Johnson signedChanges made in 2005 impacted on eligibility
Medicare and Medicaid into law as part of his "Greatrequirements and the Deficit Reduction Act now
Society" and ex President Truman was the firstrequires that anyone seeking to claim Medicare has to
person to receive a Medicare card in recognition of hisprove they are a United States citizen or resident alien.
role in establishing the program. Approximately 19 MillionIn 2006 the voluntary Part D outpatient prescription
people enrolled in the system during the first year.drug benefit was made available to people with private
Over the years, there have been several keydrugs plans and Medicare Advantage Plans.
developments and changes during Medicare history inDuring his election campaign in 2008 Barack Obama
the US. In 1972 changes to the system werecalled for further reforms of the Medicare system to
expanded to cover two high risk groups. These wereguarantee coverage irrespective of health status, as
disabled persons 65 and under who had beenwell as introducing uniform premiums not dependent on
receiving cash benefits for 24 months, and personsincome. In 2009 Barack Obama instigated some
with end stage renal disease. The Medicare servicesfurther reforms to the system to extend coverage to
were also expanded to include speech therapy, somemillions more children. On March 23 a health care
chiropractic services, and physical therapy. Thereform bill was signed into law by President Obama.
Supplemental Security Income program wasDespite the checkered Medicare history, in the US
established and those recipients became automaticallytoday the scheme is the biggest source of funding for
eligible for Medicare.medical and health related services for people living on
In 1983 a prospective payment system was introduceda low income in the US. With a rapidly aging population,
and most federal civilian employees were nowthe scheme's nursing home coverage is expanding at
covered. By 1984 remaining federal employees,a huge rate, which could prove problematic to future
including the President, were covered. In 1986 hospicefederal and state budgets.
benefits were made permanent and in 1988 there was