Medicare Benefits Programs: A Brief History of Your Health Benefits
On July 30, 1965, U.S. President Lyndon B. Johnson passed the Medicare Benefit legislation as an amendment to the Social Security Legislation. Medicare is a health insurance program for U.S. citizens at least 65 years old, or those aged younger than 65 years who suffer from certain disabilities.
U.S. citizens and permanent residents who have worked at least 10 years in employment during which they paid Medicare benefit taxes, and who are at least 65 years old, are eligible to participate in the Medicare benefit coverage.
In fact, persons meeting these two requirements are automatically enrolled the Medicare program on their 65th birthday. Those who are not automatically eligible or who are younger than 65 years must apply to participate in the Medicare benefit program.
Originally, medicare was split into 2 parts. Part A covered insurance for hospital expenses. Part B covered other medical insurance costs. Additionally 2 other parts (Part C and Part D) have been added to address other health issues.
Part A of the Medicare benefit program covers hospital stays of at least 72 hours. It also will pay for stays in a nursing home provided that the nursing home care is related to the hospital stay, the patient requires skilled nursing supervision in lieu of rehabilitation, and the Medicare benefit received in the nursing home is skilled rather than routine. Part A coverage part is usually free, having been paid for by the beneficiary's periodic payroll tax deductions.
Part B only offers medical insurance and is completely optional. However, Part B does cover some services and providers not under Part A. Lab tests, flu vaccinations, doctor visits, x-rays, and certain outpatient procedures may be covered by Part B.
The Part B Medicare benefit is not free. Instead, the person must choose whether or not to pay for Part B when notice of Medicare benefit eligibility is received at age 65. In 2006, the Part B monthly premium was $88.50.
In 1997 the option to receive care through private insurance plans was added to the Medicare Benefits program. Private plans could replace both the medical insurance coverage and hospital insurance coverage of the original Medicare program. In 2003 these private plans were regulated and became known as Medicare Advantage plans, MA plans for short.
On the 1st of January, 2006, Part D of Medicare was brought into existence. If you were able to get Part A or Part B you were considered eligible to receive the Part D prescription drug plan. Thanks to Part D, you could participate in many Medicare-approved, standalone, prescription drug plans.
These plans gave many reduced-cost prescription benefits. For each drug prescription plan there were separate restrictions that were different based on location, drugs covered, and participating pharmacies.
There's rather frightening evidence that Medicare will be completely bankrupt as early as 2018. It's simple math, there's a lot more money coming out of Medicare than there is going in. By 2031 it's estimated there will be around 77 million people from the Baby Boomer era enrolled in medicare.
U.S. citizens and permanent residents who have worked at least 10 years in employment during which they paid Medicare benefit taxes, and who are at least 65 years old, are eligible to participate in the Medicare benefit coverage.
In fact, persons meeting these two requirements are automatically enrolled the Medicare program on their 65th birthday. Those who are not automatically eligible or who are younger than 65 years must apply to participate in the Medicare benefit program.
Originally, medicare was split into 2 parts. Part A covered insurance for hospital expenses. Part B covered other medical insurance costs. Additionally 2 other parts (Part C and Part D) have been added to address other health issues.
Part A of the Medicare benefit program covers hospital stays of at least 72 hours. It also will pay for stays in a nursing home provided that the nursing home care is related to the hospital stay, the patient requires skilled nursing supervision in lieu of rehabilitation, and the Medicare benefit received in the nursing home is skilled rather than routine. Part A coverage part is usually free, having been paid for by the beneficiary's periodic payroll tax deductions.
Part B only offers medical insurance and is completely optional. However, Part B does cover some services and providers not under Part A. Lab tests, flu vaccinations, doctor visits, x-rays, and certain outpatient procedures may be covered by Part B.
The Part B Medicare benefit is not free. Instead, the person must choose whether or not to pay for Part B when notice of Medicare benefit eligibility is received at age 65. In 2006, the Part B monthly premium was $88.50.
In 1997 the option to receive care through private insurance plans was added to the Medicare Benefits program. Private plans could replace both the medical insurance coverage and hospital insurance coverage of the original Medicare program. In 2003 these private plans were regulated and became known as Medicare Advantage plans, MA plans for short.
On the 1st of January, 2006, Part D of Medicare was brought into existence. If you were able to get Part A or Part B you were considered eligible to receive the Part D prescription drug plan. Thanks to Part D, you could participate in many Medicare-approved, standalone, prescription drug plans.
These plans gave many reduced-cost prescription benefits. For each drug prescription plan there were separate restrictions that were different based on location, drugs covered, and participating pharmacies.
There's rather frightening evidence that Medicare will be completely bankrupt as early as 2018. It's simple math, there's a lot more money coming out of Medicare than there is going in. By 2031 it's estimated there will be around 77 million people from the Baby Boomer era enrolled in medicare.