History of Medicare: So we know what we're dealing with and know what we're talking about

[graywarrior]

BRIEF HISTORY OF THE MEDICARE PROGRAM

1945 Harry Truman sends a message to Congress asking for
legislation establishing a national health insurance plan.

Two decades of debate ensue, with opponents warning of the
dangers of "socialized medicine."

By the end of Truman's administration, he had backed off
from a plan for universal coverage, but administrators in
the Social Security system and others had begun to focus
on the idea of a program aimed at insuring Social Security
beneficiaries.

July 30, 1965 Medicare and its companion program Medicaid, (which
insures indigent recipients), are signed into law by
President Lyndon Johnson as part of his "Great Society."

Ex-president Truman is the first to enroll in Medicare.

Medicare Part B premium is $3 per month.

1972 Disabled persons under age 65 and those with end-stage
renal disease become eligible for coverage.

Services expand to include some chiropractic services,
speech therapy and physical therapy.

Payments to HMOs are authorized.

Supplemental Security Income (SSI) program is established
for the elderly and disabled poor. SSI recipients are
automatically eligible for Medicaid.

1982 Hospice benefits are added on a temporary basis.

1983 Change from "reasonable cost" to prospective payment
system based on diagnosis-related groups for hospital
inpatient services begins.

Most federal civilian employees become covered.

1984 Remaining federal employees, including President, members
of Congress and federal judiciary become covered.

1986 Hospice benefits become permanent.

1988 Major overhaul of Medicare benefits is enacted aimed at
providing coverage for catastrophic illness and
prescription drugs.

Coverage is added for routine mammography.

1989 Catastrophic coverage and prescription drug coverage are
repealed.

Coverage is added for pap smears.

1992 Physician services payments are based on fee schedule.

1997 Medicare+Choice is enacted under the Balanced Budget Act.
Some provisions prove to be so financially restrictive
when regulations are unveiled that Congress is forced to
revisit the issue in 1999.

1999 Congress "refines" Medicare+Choice and relaxes some
Medicare funding restrictions under the Balanced Budget
Refinement Act of 1999.

2000 Medicare+Choice Final Rule takes effect.

Prospective payment systems for outpatient services and
home health agencies take effect.

Medicare Part B premium is $45.40 per month.



And this from the Social Security site. Note: Social Security uses the word "Social" which people complaining about "Socialized Medicine" don't even blink an eye over.



THE EVOLUTION OF MEDICARE . . . from idea to law

by Peter A. Corning

http://www.ssa.gov/history/corning.html



Adding this for your enjoyment
http://www.youtube.com/watch?v=fRdLpem-AAs

[livetohike]

1. Look how long it was before pap smears were covered

Thanks for posting this :hi:.

[graywarrior]

2. It happened in stages.

Like Obama's plan might. We need to be patient patients.

[DURHAM D]

3. 2009 - Part B premium is $96.40.

More than doubled in 8 years.

Very interesting - thanks for posting.

[ipaint]

4. 2010- medicare eligibility dropped to 55

2011 medicare eligibility dropped to 45
2012 medicare eligibility dropped to 30
2013 medicare covers everyone.

Oh wait.

2010

We start at square one attempt to build a whole new system with for profit private insurance as the controlling partner. See 1945.

[graywarrior]

5. Thought I would add this

In 1934, President Franklin D. Roosevelt created the Committee on Economic Security (CES). The CES was assigned the task of studying the need for an economic security system to provide income for the elderly and disabled. Care for those unable to work was traditionally provided by family members or, in limited cases, by the government. Roosevelt recognized the need for a national system. In January 1935, the CES issued a report to President Roosevelt outlining a plan for a national program of economic security. This plan ultimately became the Social Security Act (SSA), which was passed by Congress on August 14, 1935.

The SSA created a social insurance program a variety of individuals. The law provided a monthly benefit to individuals age 65 and older and no longer working. The monthly benefit was paid to the primary worker when he retired; the amount received was based on the individual’s payroll tax contributions. The SSA also provided unemployment insurance, aid to dependent children, and grants to states for medical care. The Social Security Board was established and charged with implementing a system to enroll employees, report earnings, and collect payroll tax contributions. Under the initial SSA, monthly benefits were to begin in 1942; from 1937 until 1942, Social Security would pay out a single lump sum to anyone retiring. This “payback” sum was given to those paying into Social Security but not having sufficient contributions to vest in monthly benefits.

There have been several important amendments to the original 1935 Social Security Act. In 1939, Social Security was modified to add benefits to the spouse or minor children of a retired worker. It also added a survivor’s benefit, paid to the family in the event of the premature death of a covered worker. Thus, with the 1939 amendment, the idea of economic security became a family-based program rather than an individual-based one, and one that provided benefits for retirement, disability, premature death, and medical costs after retirement. The payment of monthly benefits was accelerated to begin in 1940 rather than 1942. Interestingly, the first monthly retirement check was issued to an individual who had paid a total of $22.54 into the system and received $22,000 in benefits over her lifetime!

The next significant change to the SSA occurred in 1950, when the first cost of living adjustment (COLA) was added the program. This was a one-time increase in benefits of 7.7%; the next COLA occurred in 1952, a 12.5% increase. In 1954, a stipulation was added that would freeze a worker’s record during the years he was disabled and unable to work. This amendment avoided a worker’s receiving reduced or no benefits in the event of a disability.

In 1961, the retirement age for men was reduced to 62, with a reduced monthly benefit for those choosing to retire early. Several major changes to Social Security occurred with the 1972 amendment: automatic COLAs were instituted, a minimum monthly benefit was established, monthly benefits were significantly increased to those individuals waiting until age 65 to retire, and a system for automatic increases in the amount of earnings subject to Social Security taxation was developed.

[graywarrior]

6. Kicking for last time for the night folks.