Since its establishment in 1965, Medicare has undergone many changes to cover those in need. Over the last 50 years, Medicare has been expanding and growing to eventually cover a population of over 50 million people. This constant growth in the number of beneficiaries is critical to our staff at Senior Financial Group and has been since our company’s founding in 1983.
It’s important to SFG and all Medicare beneficiaries to be aware of the evolution of Medicare and the major changes it has seen over the last 50 years. To learn about the history of Medicare, take a look at this timeline of Medicare history.
- July 30, 1965: President Johnson establishes Medicare and Medicaid for the elderly and impoverished.
Medicare Part A deductible: $40/year. Medicare Part B premium: $3/month.
- July 1, 1966: A year later, Medicare coverage begins. All people 65 and over Part A coverage. Coverage also begins for those who signed up for Part B.
Over 19 million people are enrolled in Medicare.
- 1970: Medicare Part A deductible: $52/year. Medicare Part B premium: $4/month.
Medicare population now 20.4 million.
- October 30, 1972: Social Security Amendments of 1972 signed by President Nixon. This extends Medicare eligibility to people under the age of 65 with long-term disabilities and to people with end-stage kidney disease. Also encouraged the use of HMOs, established organizations to review patient care, and give Medicare the authority to construct demonstration programs.1973: Coverage begins for those receiving Social Security Disability Insurance. (Individuals must have been receiving cash payments for two or more years.)
Close to 2 million people under 65 with kidney disease or long-term disabilities are covered.
- 1975: Medicare Part A deductible: $92/year. Medicare Part B premium: $6.70/month.
Total Medicare population now 24.9 million.
- 1985: Medicare Part A deductible: $400/year. Medicare Part B premium: $15.50/month.
Total Medicare population now 31.1 million.
- 1988: The Medicare Catastrophic Coverage Act of 1988- includes an outpatient prescription drug benefit and a cap on beneficiaries’ out-of-pocket expenses, and expands hospital and skilled nursing facility benefits.
- 1995: Medicare Part A deductible: $716/year. Medicare Part B premium: $46.10/month.
Total Medicare population now 37.6 million.
- 1999: The first annual “Medicare & You” handbook is mailed to all Medicare beneficiaries, and the toll-free number 1-800-MEDICARE is made available nationwide.
- 2000: Medicare Part A deductible: $776/year. Medicare Part B premium: $54.40/month.
Total Medicare population now 39.7 million.
- 2005: Medicare Part A deductible: $912/year. Medicare Part B premium: $72.80/month.
Total Medicare population now 42.3 million.
- 2010: The Patient Protection and Affordable Care Act of 2010. This includes a long list of provisions intended to contain Medicare costs while improving and streamlining its delivery systems, as well as increasing services and revenue.If you’d like to learn more about the history of Medicare, check out http://www.poconorecord.com/article/20150307/NEWS/150309514/101010/NEWS. Additionally, if you have any questions about your Medicare, call our Benefits Specialists at (865) 777-0153.