Medicare Programs: A Brief History of Your Health Benefits

Posted by Jakoby Bentham

July 6, 2009

by AJ Spinro

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.

United States citizens and permanent US residents who have been employed for at least 10 years and have paid Medicare benefit taxes and are at least 65 years of age are eligible for Medicare coverage.

As a matter of fact, individuals who meet these requirements are enrolled in the Medicare program automatically when they reach the age of 65. Those not eligible for automatic enrollment or who are below 65 years of age are required to apply for the Medicare Benefit program on their own.

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.

If you stay in a hospital more than 72 hours, Part A of medicare covers you. You can also receive compensation for staying in a nursing home, given that the stay is related to your hospital stay. Such as if the patient needs adept nurse oversight while rehabilitating, and the benefits received in the home are more than just routine skills. Coverage under Part A is generally free since you have paid for it in your 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.

The Part D Medicare benefit became effective on January 1, 2006. Anyone eligible for Parts A or B were automatically eligible to participate in the Part D prescription drug plan. Part D added the Medicare benefit of allowing participants to enroll in one of many standalone, Medicare-approved prescription drug plan.

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.

Some people fear that the Medicare benefit system will eventually go bankrupt around the year 2018. The rationale is that more people are retiring and taking advantage of their Medicare benefit plan than are paying into the system. Once the Baby Boomer generation is fully enrolled in the Medicare benefit system around 2031, the membership is estimated to be 77 million persons.

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Fore more info about medicare health benefits, visit http://medicare-benefits.com

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