In 1973, Medicare was expanded to cover people under the age of 65 who needed dialysis or transplants due to kidney failure, as well as those with specific disabilities.
The exception to this is drugs that Medicare specifically excludes from coverage, including but not limited to benzodiazepines, cough suppressants, and barbiturates.
Future growth in spending per beneficiary for Medicare and Medicaid—the federal government’s major health care programs—will be the most important determinant of long-term trends in federal spending.
At the bill-signing ceremony President Johnson enrolled former President Harry S. Truman as the first Medicare beneficiary and presented him with the first Medicare card.
The original Medicare program has two parts: Part A (Hospital Insurance), and Part B (Medical Insurance).
Only those eligible for Medicare but who do not have 40 or more quarters of Medicare-covered employment are required to pay a monthly premium.
In 2000, almost 16 percent of all Medicare beneficiaries participated in "Medicare+Choice" plans.
Medicare Part B premiums are commonly deducted automatically from beneficiaries' monthly Social Security checks.
Most individuals automatically enroll in Medicare Part A without having to pay a premium because they, or their spouse, paid sufficient taxes while working.
American citizens are automatically eligible for Medicare upon reaching the age of 65 because they, or their spouses, paid Social Security taxes during their working years.
Medicare is a federally funded health insurance program in the United States, designed to cover older individuals and those who meet other special criteria.
Medicare faces continuing challenges dealing with the financial viability, availability, and quality control of services that cause widespread social concerns.
Total Medicare spending reached $440 billion for fiscal year 2007, or 16 percent of all federal spending.
According to the 2004 "Green Book" of the House Ways and Means Committee, Medicare expenditures from the American government were $256.8 billion in fiscal year 2002.
The debate over how to improve Medicare and resolve this problem has lasted many years without resolution.
The fundamental problem is that the ratio of workers paying Medicare taxes to retirees drawing benefits is shrinking at the same time that the price of health care services per person is increasing.
Medicare Part A and Part B together do not cover all the medical services that individuals require.
Medicare Part B medical insurance helps pay for some services and products not covered by Part A, generally on an outpatient basis.
From 3.9 workers paying taxes into Medicare for every older American receiving services as the baby boom generation retires, this figure is projected to drop to 2.4 workers for each beneficiary by 2030.
Until December 31, 1993, the law provided a maximum amount on which the Medicare tax could be imposed each year.
Medicare Part A covers hospital stays and certain services following a hospital stay.
When it began in the 1960s, Medicare covered approximately 19 million individuals aged over 65.
Medicare is a social insurance program administered by the United States government providing health insurance coverage to people who are aged 65 and over, or who meet other special criteria.
Part C or Medicare Advantage plans are another way for beneficiaries to receive their Part A, B, and D benefits.
Spending on Medicare and Medicaid is projected to continue to grow with the result that the Medicare hospital insurance trust fund has been projected to become insolvent, possibly before 2020.
The Government Accountability Office lists Medicare as a "high-risk" government program in need of reform, in part because of its vulnerability to fraud and partly because of its long-term financial problems.
Medicare is very different from Medicaid, a government assistance program that provides health care benefits to certain categories of low-income individuals, although they are often associated.
The Centers for Medicare and Medicaid Services (CMS), a department of DHHS, administers Medicare, Medicaid, the State Children's Health Insurance Program (SCHIP), and the Clinical Laboratory Improvement Amendments (CLIA).
Both Medicare Parts A and B have annual or benefit period (episode of illness) deductibles and coinsurance charges that must be paid for covered services.
Only a few special cases exist where prescription drugs are covered by original Medicare, but as of January 2006, Medicare Part D provides more comprehensive drug coverage.
Medicare Advantage Plans that also include Part D prescription drug benefits are known as a Medicare Advantage Prescription Drug plan or a MAPD.
Most Medicare enrollees do not pay a monthly Part A premium, because they (or their spouse) have had 40 or more quarters in which they paid Federal Insurance Contributions Act taxes.
Some people may qualify to have other governmental programs (such as Medicaid) pay premiums and some or all of the costs associated with Medicare.
Medicare Part D went into effect on January 1, 2006, by the passage of the Medicare Prescription Drug, Improvement, and Modernization Act.
Medicare Part B medical insurance helps pay for some services and products not covered by Part A, generally on an outpatient basis.
Pursuant to the Medicare Prescription Drug, Improvement, and Modernization Act of 2003, the compensation and business practices changed for insurers that offer these plans, and "Medicare+Choice" plans became known as "Medicare Advantage" (MA) plans.
Medicare provides insurance benefits in several different areas including hospital stays, post-hospital skilled nursing care, and prescription drug coverage.
One concern is that health insurance through Medicare will not continue, or not at an affordable price, due to federal budget cuts.
Another segment of the cost of Medicare is attributable to fraud, which government auditors estimate costs Medicare billions of dollars a year.
Medicare is the largest publicly funded health insurance program in the United States and plays an essential role in caring for the needs of the elderly and disabled.
Medigap policies sold after the introduction of Medicare Part D on January 1, 2006, are prohibited from covering drugs.
Competing approaches to reform include reducing per capita spending through incremental changes or major structural reforms, such as shifting Medicare to the control of private plans.
Some individuals with limited financial resources qualify for Medicaid, which covers many of the services not covered by Medicare.