What was before Medicare?
Before Medicare was created, only approximately half of people over the age of 65 had health insurance, according to the Centers for Medicare & Medicaid Services. “With coverage often unavailable or unaffordable to many others, as older adults paid more than three times as much for health insurance as younger people,” explainsKeith Lind, Senior Strategic Policy Advisor in AARP’s Public Policy Institute.
When did Medicare start and why?
This is a fun history lesson. Medicare’s beginnings go back to the Social Security Act of 1934, after then-President Franklin D. Roosevelt decided not to include national health insurance in it. His staff continued to work on a solution, and after years of work, in 1943 it was incorporated into a national health insurance bill called the Wagner, Murray, Dingell bill, and sent to Congress. In 1945, President Harry Truman endorsed this bill, but by the end of his term in 1952, Medicare had become a ‘scaled-down version’ of national health insurance that was set to cover all Social Security beneficiaries—the elderly, widows, and orphans. At that time, President Eisenhower opposed this and introduced a Federal reinsurance plan for private insurance companies in 1954. Still, no resolution. Then under President Kennedy, in 1963 he created a proposal for elderly health care that passed the Senate in 1964, but failed in the House. When President Lyndon B. Johnson was elected in 1964, he asked Congress to make Medicare a priority. It wasn’t until July 30, 1965, President Lyndon B. Johnson signed into law the bill (called the Social Security Amendments Act) that led to the creation of Medicare and Medicaid, including the original Medicare program included Part A (Hospital Insurance) and Part B (Medical Insurance). “Today, these 2 parts are called ‘Original Medicare’,” says Lind. Medicare coverage officially began on July 1, 1966, with more than 19 million Americans enrolled.
Medicare Transformation
Over the years, Congress has made many changes to Medicare. “In 1972, Medicare was expanded to cover the disabled, people with end-stage renal disease (ESRD) requiring dialysis or kidney transplant,” says Lind. “And in 1982, hospice services were added. “Medicare added the option of enrolling in private health maintenance organizations (HMO) in the mid-1970s.” In more modern times, it has continued to evolve. “In 1997, Congress expanded this benefit to include other types of private health plans and designated the benefit as Medicare Part C which is now referred to as Medicare Advantage,” says Lind. “In 2003, Congress added a prescription drug benefit, also known as Part D, which went into effect in 2006.” In 2020, there were more than 61 million Americans enrolled in Medicare benefits, according to the Kaiser Family Foundation. Next, check out surprising things covered by Medicare.
