The problem with Medicare is that you never know how much they’re willing to cover?
However today story is about Medicare going into effect on July 1st 1966, I didn’t know it was around that long, did you?
Medicare was passed into law on July 30, 1965 but beneficiaries were first able to sign-up for the program on July 1, 1966.
Medicare is the federal health insurance program for people who are 65 or older, certain younger people with disabilities, and people with End-Stage Renal Disease (permanent kidney failure requiring dialysis or a transplant, sometimes called ESRD).
When I found out my left kidney was diseased in 1997, and I had to have it removed. When I applied for Medicare, because I didn’t have health insurance at the time, they denied me.
So what’s the point of having Medicare?
Believe it or not, the Medicare’s Hospital Insurance Trust Fund, which finances about half of the health program for seniors and the disabled, won’t run out of money until 2030.
But that’s not the case for the part of Social Security that pays for people getting disability benefits. The Disability Insurance Trust Fund is projected to run out of money in 2016, just two years from now, unless Congress intervenes.
Notwithstanding recent favorable developments, both the projected baseline and current law projections indicate that Medicare still faces a substantial financial shortfall that will need to be addressed with further legislation.
In the New York Times just recently the article I read said, that Medicare: Not Such a Budget-Buster Anymore.
The changes are big. The difference between the current estimate for Medicare’s 2019 budget and the estimate for the 2019 budget four years ago is about $95 billion. That sum is greater than the government is expected to spend that year on unemployment insurance, welfare and Amtrak combined.
Some of the recent reductions in Medicare spending are because of differences in estimates about the economy and demographics that affect the program.
How long this all will last is a source of great debate in the world of health economics. There have been a series of analyses on the spending slowdown, some of which peg the Great Recession as a major cause. If those studies are right, the trend may reverse itself as the economy improves as we celebrate today of Medicare going into effect for consumers.
Written & Designed by JD Mitchell