Medicare was established in 1965 and serves millions of Americans.
Because health insurance is not provided to all Americans as in most other industrialized nations, Congress designed the Medicare program to foster the welfare of United States citizens. President Lyndon Baines Johnson signed The Medicare Act into law in 1965. Medicare is a program run by the federal government to provide health insurance for people who are 65 and over, and for those who are disabled. It is funded through premiums and tax revenues.
Historical Perspective of Medicare
Before Medicare, health insurance in America was utilized by only 56 percent of the population ages 65 and over. Those who had health insurance were typically workers who received it as an employee benefit. President Harry Truman first proposed a health insurance plan for all Americans in 1945, and President John Kennedy pushed for health insurance for the aged. The Medicare bill was signed into law on July 30, 1965, and President Truman was issued the first Medicare card as a tribute to his initiatives on providing healthcare to Americans. President George W. Bush modernized the plan to include a prescription drug benefit in 2003, and discussion about national health insurance continues under President Barack Obama.
Parts of Medicare
Original Medicare today is composed of the same components that President Johnson signed into law in 1965. Medicare Part A covers inpatient hospital expenses, while Part B covers medically necessary expenses. Medicare Part B is also referred to as "medical insurance." Contemporary Medicare also offers Part C, the Medicare Advantage Plan, which combines benefits of other Medicare parts, and Part D, prescription drug coverage.
Medicare Part A
Part A of Medicare covers a portion of the costs for hospitalization. Most people do not pay a premium for Part A coverage since they contributed to Medicare through taxes while they or their spouse were working. Elderly people who are not eligible for premium-free Part A may be eligible to sign up voluntarily by paying a monthly premium. This hospital insurance helps cover patient care in a hospital, skilled nursing facility or hospice. Today, Medicare Part A does not cover long-term care, but it may cover some costs for home health care in certain situations. Part A also funds medical education in the United States.
Medicare Part B
People who elect to participate in Medicare Part B pay a monthly premium. Part B covers part of the costs of doctors and necessary medical services. This may include nursing expenses, diagnostic tests such as X-rays and blood draws, and equipment such as wheelchairs. Today more preventative medical services are available through Part B, such as immunizations and screenings for colorectal cancer and other diseases.
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