>> HISTORY LESSON.
Medicare is the federal health insurance program created in 1965 for all people age 65 and older, regardless of income or medical history, and now covers 50 million Americans. In conjunction with Social Security, Medicare plays a vital role in providing financial security to seniors and younger beneficiaries with disabilities. In 2012, Medicare spending is estimated to account for 15% of total federal spending and21% of total national health spending. (Learn more with these handy fact sheets from The Kaiser Family Foundation.)
>> How is Medicare Funded? Read about it on our blog.
Most people age 65 and older are entitled to Medicare Part A if they ortheir spouse are eligible for Social Security payments and have made payroll tax contributions for 10 or more years. Medicare was expanded in 1972 to include people under age 65 with permanent disabilities. Nonelderly people who receive Social Security Disability Insurance(SSDI) generally become eligible for Medicare after a two-year waiting period, while those diagnosed with end-stage renal disease (ESRD) and amyotrophic lateral sclerosis (ALS) become eligible for Medicare with no waiting period.
The Affordable Care Act of 2010 includes a number of provisions that affect Medicare, including enhanced benefits (free prevention services and phasing out the Part D coverage gap), spending reductions affecting plans and providers, delivery system reforms, premium increases for higher-income beneficiaries, and a payroll tax on earnings for higher-income people. In addition, the law authorizes a new Independent Payment Advisory Board tasked with constraining the growth in Medicare spending over time.
This information taken from The Kaiser Family Foundation.
