How it all began!
Medicare didn’t happen overnight. It came in 1965 to fix a serious problem: millions of older Americans had little or no access to affordable health insurance. Thus, it fell upon the government to step in and hence Medicare came into being, changing the face of healthcare for generations in the future.
Without Medicare, it wasn’t exactly looking pretty for retirees. Often, people were left without health insurance from employers after retiring, and to buy private insurance? Forget it. It was either unaffordable or just flat-out unavailable in many cases due to age or a pre-existing condition. Health costs continued skyward, and the elderly were literally paying the price.
Imagine turning 60, retiring, and learning you had no health insurance. A single serious illness would, at an average cost, quickly absorb all of your savings—or worse—risk not seeing a doctor so as not to pose an unfavorable financial burden on your family. That’s how tens of millions of Americans lived in fear before Medicare was created.
Let’s take a brief look at some major Medicare milestones:
Enter Medicare. The brainchild of President Lyndon B. Johnson signed into law on July 30, 1965, Medicare began inauspiciously enough: it covered hospital insurance (Part A) and medical insurance (Part B) for those aged 65 and over. Finally, retirees had a safety net. The years have passed, and the program now covers more benefits and people.
– 1972: Medicare was expanded to include those under 65 who are disabled and those with end-stage renal disease.
– 2003: The Medicare Prescription Drug Improvement and Modernization Act brought in Part D, so that prescription drugs would fall within the reach of millions of people. Medicare beneficiaries didn’t receive prescription drug coverage until 2006.
– 2010: The Affordable Care Act made huge changes, such as expanding preventive services and steps that hopefully would begin to close the Part D “donut hole”—a gap in prescription drug coverage that had proved very costly for many beneficiaries.
Medicare changes in more current times
2024: Great news for people managing diabetes—Medicare now caps insulin prices at just $35 per month for all Part D-covered insulin products. This change is a huge relief for many, considering the skyrocketing costs of insulin in recent years. It’s a big step toward making essential medications affordable for everyone.
2025: Starting in 2025, the Inflation Reduction Act will cap annual prescription drug costs at $2,000 for Medicare beneficiaries. That means no more paying out-of-pocket after you hit that $2,000 limit, no matter how expensive your medications are. This is a game-changer for those who rely on high-cost medications and will help protect millions from financial hardship due to medical expenses.
Fun Facts About Medicare!
1. The First Medicare Card was issued to none other than President Harry S. Truman. He was a strong supporter of creating a national health insurance program, so when Medicare launched, President Johnson honored him with the first card.
2. Medicare’s Popularity? Off the Charts! In its first year, over 19 million Americans signed up for Medicare. And today? More than 60 million people rely on it for healthcare coverage.
3. Medicare Costs Less Than You Think – When it was first launched, Part B of Medicare (which covers doctor visits and outpatient care) cost just $3 per month! While premiums have risen since then, Medicare remains a more affordable option than most private insurance plans.
4. Medicare’s Evolution: Did you know that when Medicare started, there was no prescription drug coverage? That didn’t come until 2006, when Part D was introduced. Now, Part D helps millions of Americans pay for their much-needed medications.
What’s Next for Medicare?
Medicare keeps evolving to meet the needs of its members, and trust me, there’s always something new to know! From changes in benefits to new enrollment options, it’s important to stay informed.
Got questions about Medicare or wondering what’s next for the program? Text me at 404-225-6331 or email me at sarah@tis-ga.com – I’m here to help!
And stay tuned for my upcoming video, where I’ll dive into more fun facts and the future of Medicare!
