History
Title XVIII of the Social Security Act, designated "Health Insurance for the Aged and Disabled," is commonly known as Medicare. As part of the Social Security Amendments of 1965, the Medicare legislation established a health insurance program for aged persons to complement the retirement, survivors, and disability insurance benefits under Title II of the Social Security Act. When first implemented in 1966, Medicare covered most persons age 65 or over. In 1973, the following groups also became eligible for Medicare benefits: persons entitled to Social Security or Railroad Retirement disability cash benefits for at least 24 months, most persons with end-stage renal disease (ESRD), and certain otherwise non-covered aged persons who elect to pay a premium for Medicare coverage. (Wilensky, 2004)
Different parts of Medicare
Medicare has traditionally consisted of two parts: hospital insurance (HI), also known as Part A, and supplementary medical insurance (SMI), also known as Part B. A new, third part of Medicare, sometimes known as Part C, is the Medicare+Choice program, which was established by the BBA (Public Law 105-33) and which expanded beneficiaries' options for participation in private-sector health care plans. When Medicare began on July 1, 1966, approximately 19 million people enrolled. In 20001, about 40 million people are enrolled in one or both of Parts A and B of the Medicare program, and 5.7 million of them has chosen to participate in a Medicare+Choice plan.(Feldstein, 2003)
Medicare Prescription Drug
One of the biggest changes since Medicare was created in 1965, the Medicare Prescription Drug Modernization Act, will soon be upon us. Whether you believe the new prescription drug benefit pays for too little or too much medication for seniors, or whether it inappropriately subsidizes or properly incentivized pharmacy benefit management and managed care companies for offering drug benefit plans and taking risks, there is no doubt this legislation will change the dynamics of a typical office visit between older adults and their physicians. (Berk, 1990).............
