Key Legislation
Medicare was created through a piece of legislation and has only been around since the 1960s. Here are a list of key legislation that created Medicare and made it the program we know today.
Social Security Act (Title XVIII)
Signed by President Lyndon B. Johnson in 1965, The Social Security Act (specifically Title XVIII) created the medicare program. The Social Security Act included Part A and Part B, while the other parts where included much later. This act was the first piece of legislation that offered federal assistance to the elderly.
Medicare Prescription Drug, Improvement, and Modernization Act (MMA)
Signed by President George W. Bush in 2003, The Medicare Prescription Drug, Improvement, and Modernization Act created Part D, and amended Title XVIII of the Social Security Act to provide for a voluntary prescription drug benefit under the medicare program. The MMA was passed in order to address the problem of increasing drug costs for senior citizens, which wasn't orignially addressed in the Social Security Act.
The MMA allowed a drug benefit to be available for any Medicare enrollee, regardless of income, for a set premimum.
Affordable Care Act
Signed by President Barack Obama in 2010, The Affordable Care Act (also known as Obamacare) had major on the entire United States healthcare system as well as the Medicare program.
The Affordable Care Act included the following provisions that effected Medicare:
- Enhanced benefits
- Spending reductions affecting plans and providers
- Delivery system reforms
- Premium increases for higher-income beneficiaries
- Payroll tax on earnings for higher income people
The Affordable Care Act also included cuts to Medicare, specifically Part C. The act was partially paid for it by enacting $200 billion in cuts to Medicare Advantage over 10 years.