Medicare History

Medicare History

In 1965 President Lyndon B. Johnson signed the Medicare Act. This act promised to improve other health and medical assistance for Americans of all age. One of the primary goals of Medicare is to provide health insurance for seniors above 65 years old and to who have received Social Security Disability for a minimum of two years. Medicare provided around 70% of hospital bills – only 70% reimbursements of the expenses were made. It became necessary to fill the gap – a Medicare supplement plan was formed called “Medigap.”

The first Medicare supplemental policies in 1971 were introduced by Bankers life. Bankers Life signed contracts with a ton of insurance agents to market this big innovation. Because of the involvement of the policies, they gained a 47% share in the market. Many other companies in the industry – such as Mutual of Omaha, United American, and Colonial Life, got a smaller share of the market. This resulted in lower contracts for independent insurance agents who received a percentage of the premium for six years. Bankers Life continued dominating the market and sold its policies through independent agents.

The National Association of Insurance Commissioners (NAIC) standardized the policies and right to sell to the public, in 1981. It led to the creation of Medigap Plans A, B, C, D, F, G, K, L, M and Plan N. Plan A is a basic coverage which is offered to every customer by the insurance company.  Plan J is the most comprehensive coverage, and it pays all deductibles, co-insurance and up to $3,000 annually for pharmaceutical items

Plan F pays the entire Medicare expenses alongside the original Medicare but does not cover medicines. In 2005, Plan F included an astonishing 56% of new sales by the top four Supplemental insurers – Bankers Life,  Colonial Life, United American, and Mutual of Omaha and the majority of Medicare supplement customers signed up for this plan.

In 2004, the U.S federal government established a drug benefit program for Medicare recipients. This program was worth billions of dollars. This program is called Medicare Part D known as Prescription drug coverage. This plan helps pay for prescription medication. 


To find out more about Medigap plans you can visit our website at www.eMedigap-Plans.com, or you can visit our other blog posts. 

Comments

Post a Comment

Popular posts from this blog

Changes To Medigap At The End Of 2019

When you are purchasing a Medicare supplemental policy it is crucial that you use care when making your selection, especially over the next few months.  At the end of 2019 certain Medigap plans will no longer be available.  Medigap Plan F, which is known as the premier supplemental insurance plan , will no longer be available for new enrollees.  Medigap Plan F is currently the most comprehensive supplemental insurance plan available for purchase.  If you are a Medicare beneficiary that doesn’t want any healthcare cost surprises, then this is the ideal plan for you, but it all ends at the end of 2019. Even though Medicare Supplemental Insurance Plan F will no longer be available after the end of 2019 for new enrollees eight different options in Medigap will be.  Participants that are enrolled in Medicare Plan F before the cut off at the end of 2019 will still be allowed to continue coverage.  Industry experts are predicting that the premium of Plan F may make it so that
Read more

Medigap In Michigan

For Medicare beneficiaries enrolled in Original Medicare Part A and Part B have the opportunity to enroll in Medigap .  Original Medicare does not cover comprehensive health care coverage and therefore additional plans in the form of Medigap need to be purchased to fill in the gaps.  Medigap policies cover a wide range of health care expenses including: copayments, deductibles, coinsurance, and other out of pocket expenses. Medigap plans are regulated by the Federal government.  When comparing Medigap plans you will find that Medigap Plan F in Michigan is the same exact coverage that is offered in Medigap Plan F in Tennessee.  Most states offer all ten of the Medigap policies that are available within Medicare . Medicare enrollees should enroll in Medigap during their six-month open enrollment period that begins the first day of the month in which they turn 65 and are enrolled in both Medicare Part A and Medicare Part B.  No matter what your current state of health is, enrollment i
Read more

Common Medicare Questions Answered

When it comes to Medicare and Medigap health insurance there is a ton of confusion.  Here are the top questions that our Medicare agents get when Medicare enrollees are seeking more information on Medigap supplemental insurance plans. When can beneficiaries enroll in Medicare? There is a seven-month window in which beneficiaries can sign up for Medicare Part A, Part B, prescription drug coverage, and Medigap supplemental insurance .   This period of time includes three months before you turn 65, the month of your birthday, and the three months after you have turned 65.  When you are receiving Social Security, beneficiaries will automatically be signed up for both Medicare Part A and Part B starting the first day of the month in which you turn 65. Do my spouse and I have the same plan? Spouses do not share Medicare plans.  Each Medicare and Medigap plan are issued on an individual basis. Does Medicare offer coverage for long-term care? Long-term care is not medical care, in m
Read more