On July 30, 1965, President Lyndon B Johnson signed into law the bill that led to Medicare and Medicaid. Medicare is a Federal Health Insurance Program for people 65 and older, people with certain disabilities, people with ESRD (End Stage Renal Disease), and people with ALS, or Lou Gehrig’s Disease. Medicare was offered in 2 parts, Part A (Hospitalization) and Part B (Medical). Today, the 2 parts (Part A and Part B) is known as Original Medicare Coverage.
Since 1965 there has been several changes or “additions” to Medicare. The most significant changes were in 2003. The changes in 2003 effected Prescription Drug Coverage (Part D as we know it today), and the creation of Medicare Advantage Plans, also known as Part C of Medicare.
The next major change in Medicare effected the Coverage Gap or “Donut Hole” in Part D prescription drug coverage plans. A bill passed in 2010 effectively eliminated the Coverage Gap gradually over a period of 10 years. Each year the amount of time a Medicare Beneficiary spends inside the Coverage Gap shortens and their “out of pocket expenses” while inside the Coverage Gap shrinks. By the year 2020 the Coverage Gap will be eliminated.
Medicare has been in existence over 50 years. Today, contrary to some belief, when combined with the right Medicare Supplement Plan and Prescription Drug plan, it has become the best health insurance coverage available to Seniors. When assisted by the right Medicare Advisor/ Advocate, Seniors can have complete Health Care with NO out of pocket costs for very little premium per month compared to other types of insurance coverage. Original Medicare is accepted by over 97% of the providers in the United States with no restrictions. Having the freedom of choice and knowing that the financial burden of Medical Costs is eliminated is a true “Peace of Mind” for Seniors.