The History of Medicare

The modern American Medicare System provides health care insurance to those above the age of 65 as well as certain low-income families, those on disability and those who suffer from certain illnesses. This year is the 45th anniversary of Medicare and Medicaid; the first federally administered health insurance plans to be introduced in the United States.

The History of Medicare

The Economic Security bill of 1935 was created in hopes to repair the unstable economy in the midst of the Great Depression. The Economic Security Bill was originally signed into law by President Franklin D. Roosevelt in 1935 which established the Social Security Administration. Though the original bill did include a medical insurance program, for citizens 65 and older, it was not part of the Social Security Act when it became law.

Medicare did not become law until 30 years later. On July 30, 1965 President Lyndon B. Johnson signed the Social Security Act of 1965 into law. This historic legislation created Medicare and Medicaid, providing medical insurance coverage to Americans 65 and older.
After signing the bill President Johnson said, "We marvel not simply at the passage of this Bill but that it took so many years to pass it."

The bill was signed in Independence Missouri. Former President Harry S. Truman was present for the event and was issued the first Medicare Card. Medicare became the responsibility of the Social Security Administration while Medicaid was managed by the Social Rehabilitation Service. Many adjustments have been made to the Medicare and Medicaid programs over the years. In the 1990’s low-income families became eligible for Medicare.

Medicare Today

Today millions of Americans depend on Medicare for their medical insurance. Medicare Part A pays most of the cost of hospital stays lasting up to 60 days. It is available at no cost if you, or your spouse have made payroll contributions to Social Security for at least 10 years. Medicare Part B provides expanded coverage to help with the cost of doctor visits and other medical services. You will pay a premium for Part B coverage and it is provided through government. Medicare Parts C (Medicare Advantage plans) and D (Prescription Drug plans) are offered by private insurers, like UnitedHealth Group.

If you are interested in learning more about Medicare benefits, eligibility and more visit www.MedicareMadeClear.com where you can download an easy-to-use reference guide for understanding Medicare, or call 1-800-MEDICARE (1-800-633-4227), TTY 1-877-486-2048, 24 hours a day, 7 days a week.