BRIEF HISTORY OF THE MEDICARE PROGRAM

BRIEF HISTORY OF THE MEDICARE PROGRAM

    1945            Harry Truman sends a message to Congress asking for
                    legislation establishing a national health insurance plan.

                    Two decades of debate ensue, with opponents warning of the
                    dangers of "socialized medicine."

                    By the end of Truman's administration, he had backed off
                    from a plan for universal coverage, but administrators in
                    the Social Security system and others had begun to focus
                    on the idea of a program aimed at insuring Social Security
                    beneficiaries.

    July 30, 1965   Medicare and its companion program Medicaid, (which
                    insures indigent recipients), are signed into law by
                    President Lyndon Johnson as part of his "Great Society."

                    Ex-president Truman is the first to enroll in Medicare.

                    Medicare Part B premium is $3 per month.

    1972            Disabled persons under age 65 and those with end-stage
                    renal disease become eligible for coverage.

                    Services expand to include some chiropractic services,
                    speech therapy and physical therapy.

                    Payments to HMOs are authorized.

                    Supplemental Security Income (SSI) program is established
                    for the elderly and disabled poor.  SSI recipients are
                    automatically eligible for Medicaid.

    1982            Hospice benefits are added on a temporary basis.

    1983            Change from "reasonable cost" to prospective payment
                    system based on diagnosis-related groups for hospital
                    inpatient services begins.

                    Most federal civilian employees become covered.

    1984            Remaining federal employees, including President, members
                    of Congress and federal judiciary become covered.

    1986            Hospice benefits become permanent.

    1988            Major overhaul of Medicare benefits is enacted aimed at
                    providing coverage for catastrophic illness and
                    prescription drugs.

                    Coverage is added for routine mammography.

    1989            Catastrophic coverage and prescription drug coverage are
                    repealed.

                    Coverage is added for pap smears.

    1992            Physician services payments are based on fee schedule.

    1997            Medicare+Choice is enacted under the Balanced Budget Act.
                    Some provisions prove to be so financially restrictive
                    when regulations are unveiled that Congress is forced to
                    revisit the issue in 1999.

    1999            Congress "refines" Medicare+Choice and relaxes some
                    Medicare funding restrictions under the Balanced Budget
                    Refinement Act of 1999.

    2000            Medicare+Choice Final Rule takes effect.

                    Prospective payment systems for outpatient services and
                    home health agencies take effect.

                    Medicare Part B premium is $45.40 per month.\

2010            President Obama passed the legislation

source: http://seniorjournal.com/NEWS/2000%20Files/Aug%2000/FTR-08-04-00MedCarHistry.htm