Medicare and its evolution to 2011

Abstract

Medicare is a social security program passed in 1965 with the goal of providing health insurance coverage to Americans aged 65 years and older, those with disabilities and end-stage diseases. Originally passed as Hospital Insurance (Part A) and Supplemental Medical Insurance (Part B), Medicare has now evolved to include additional benefits such as Medicare Advantage plans and prescription drug programs. The evolution of Medicare has also been accompanied by advancements in how health care is financed and delivered in the USA-managed care and diagnosis-related groups. Several key pieces of legislation have helped shape the Medicare system we understand today: the Balanced Budget Act of 1997; the Medicare Prescription Drug, Improvement, and Modernization Act of 2003; and the Patient Protection and Affordable Care Act of 2010. As the population continues to age and medical costs continue to escalate, the Medicare system will no doubt continue to evolve to meet these challenges.