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repealed.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.
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