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 inde...