A Brief History of Medicare

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Medicare is a life saver—quite literally—for millions of retired Americans. In place since 1965, Medicare guarantees healthcare insurance to Americans age 65 and older who have worked a minimum of 40 quarters (10 years)  as well as individuals with end stage renal disease and disabled individuals under age 65.

Medicare was enacted by Congress under Title XVIII of the Social Security Act to provide health insurance to qualifying individuals of a certain age regardless of a person’s medical history or income.  It wasn’t until 1972 that Congress expanded Medicare to include younger individuals who receive Social Security Disability Insurance (SSDI) because of a permanent disability or end-stage renal disease. In 2001 Congress further expanded Medicare to include those with Lou Gehrig’s disease.

Medicare initially consisted only of Parts A and B, which, together, cover hospital and other inpatient services, outpatient care and physician visits.  Congress later added Part C (known today as Medicare Advantage), which allows patients to seek Medicare benefits from a private plan.  Medicare Part D, referred to as the Medicare prescription drug benefit, subsidizes the cost of prescription drugs for Medicare beneficiaries.  This part of Medicare is relatively new, having been enacted in 2003.

With Medicare Advantage plans (Part C), Medicare no longer pays your bills. Rather, Medicare pays a private carrier every month to take over your health care claims.  There are several advantages to purchasing a Medicare Advantage plan, which a qualified licensed insurance agent can help explain.

Benefit Packages has over 20 years of experience in the insurance industry can help you navigate your options and provide you with a California health insurance quote. Visit our website for a quote, or call us today at 1-800-356-3615for assistance.