The Basics of Medicare

Understanding Medicare can be challenging for many. To comprehend what Medicare entails, there are some fundamentals to cover.

The Parts of Medicare

Part A

Part A provides hospital coverage, helping to pay for medical stays, including hospital visits, skilled nursing facility stays, and hospice care.

Part B

Part B includes coverage for medical services like doctor’s visits, ambulance rides, lab tests, and prescribed durable medical equipment such as wheelchairs and sleep apnea machines.

Part C

Part C, known as Medicare Advantage, is a private alternative to Original Medicare, combining Parts A and B into a single plan. Many plans also include additional coverage like drug, vision, and dental care.

Part D

Medicare Part D is a privately offered prescription drug plan that complements Original Medicare. It specifies covered drugs and the pharmacies where they can be obtained.

Medicare Supplements

Medicare Supplements, or Medigap plans, are sold by approved insurers and cover the copays and deductibles that Parts A and B do not. They can be used with Original Medicare, but not with Medicare Advantage.

The History of Medicare

Medicare has a rich history of assisting Americans with healthcare costs and has evolved significantly over time.

Early Developments

Prior to Medicare, only about half of Americans over 65 had insurance, with others unable to afford it or deemed uninsurable. President Teddy Roosevelt was concerned enough to include it in his 1912 election platform. President Harry Truman initiated efforts towards national medical insurance in 1945, urging Congress to establish a national health insurance fund for all Americans. He attempted again in 1947 and 1949.

Subsequently, the Eisenhower administration enacted the Dependents’ Medical Care Act, which covered servicemen's families and eventually named Medicare. President John Kennedy formed a task force in 1961 that recommended creating a program for Americans over 65.

The Inception of Medicare

In 1964, President Lyndon Johnson advanced the act that established Medicare and Medicaid, making President Truman Medicare’s first recipient. The program expanded further in 1972 under President Richard Nixon, extending Medicare to individuals with long-term disabilities and end-stage renal disease.

Modern Medicare

Medicare Part C was introduced in 1997 under President Bill Clinton. President George W. Bush’s administration developed Medicare Part D plans in 2003. President Barack Obama’s 2010 Affordable Care Act broadened Medicare to include certain preventive services.

President Joe Biden’s 2022 Inflation Reduction Act (IRA) enabled CMS to directly negotiate specific medications and capped insulin and out-of-pocket drug costs for Medicare beneficiaries, among other measures.

Since its inception, Medicare has provided care to millions of Americans, maintaining its status as a widely favored program.

Learn more:

Medicare.gov. Parts of Medicare – https://www.medicare.gov/basics/get-started-with-medicare/medicare-basics/parts of-medicare

Not affiliated with or endorsed by Medicare or any government agency.