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On July 30, 1965, U.S. President Lyndon B. Johnson passed the Medicare Benefit legislation as an amendment to the Social Security Legislation. Medicare is a health insurance program for U.S. citizens at least 65 years old, or those aged younger than 65 years who suffer from certain disabilities.

United States citizens and permanent US residents who have been employed for at least 10 years and have paid Medicare benefit taxes and are at least 65 years of age are eligible for Medicare coverage.

People that qualify based on the previous two criteria are automatically enrolled for medicare on when they turn 65. To get medicare benefits before you turn 65 you must file an application.

Originally, medicare was split into 2 parts. Part A covered insurance for hospital expenses. Part B covered other medical insurance costs. Additionally 2 other parts (Part C and Part D) have been added to address other health issues.

If you stay in a hospital more than 72 hours, Part A of medicare covers you. You can also receive compensation for staying in a nursing home, given that the stay is related to your hospital stay. Such as if the patient needs adept nurse oversight while rehabilitating, and the benefits received in the home are more than just routine skills. Coverage under Part A is generally free since you have paid for it in your payroll tax deductions.

Part B only offers medical insurance and is completely optional. However, Part B does cover some services and providers not under Part A. Lab tests, flu vaccinations, doctor visits, x-rays, and certain outpatient procedures may be covered by Part B.

Part B benefits are not free. You must choose whether or not you want Part B, if you do choose you have to pay when you turn 65. $88.50 was the monthly cost of Part B in 2006.

In 1997 the option to receive care through private insurance plans was added to the Medicare Benefits program. Private plans could replace both the medical insurance coverage and hospital insurance coverage of the original Medicare program. In 2003 these private plans were regulated and became known as Medicare Advantage plans, MA plans for short.

The Part D Medicare benefit became effective on January 1, 2006. Anyone eligible for Parts A or B were automatically eligible to participate in the Part D prescription drug plan. Part D added the Medicare benefit of allowing participants to enroll in one of many standalone, Medicare-approved prescription drug plan.

This new Medicare Benefit also provided reduced prescription prices. Each Medicare-approved prescription drug plan varied and had certain restrictions based on location, different drugs and participating pharmacies.

There’s rather frightening evidence that Medicare will be completely bankrupt as early as 2018. It’s simple math, there’s a lot more money coming out of Medicare than there is going in. By 2031 it’s estimated there will be around 77 million people from the Baby Boomer era enrolled in medicare.