In 1965, U.S. President Lyndon B. Johnson passed the Medicare Benefit legislation as an amendment to the Social Security Legislation after 20 years of debating. 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. In 1965, nearly half of the elderly had no health insurance and many others did not have enough coverage. That is when Medicare was enacted to help assure that almost all citizens at the age 65 or older would have health care coverage. The program was modeled on the standard employer sponsored health plans of the day. As the Nation moves into the 21st century, Medicare is facing serious …show more content…
Medicare is administered by the Centers for Medicare and Medicaid Services (CMS). It is a part of the Department of Health and Human Services (HHS) and it is administered by the Federal Medicare Program. The Social Security Administration is responsible for determining Medicare eligibility and processing premium payments for the Medicare program.
The Centers for Medicare & Medicaid Services (CMS) is an operating division of the Health and Human Services Department. It was established in 1977 to combine under one administration the oversight of the Medicare Program and the federal portion of the Medicaid Program. The three divisions of the Centers for Medicare and Medicaid Services are The Center for Medicare Management, The Center for Beneficiary Choices and The Center for Medicaid and State Operation. (Fordney, 2010, p. 418) CMS employs approximately 4,100 employees, of which 2,700 are located at the headquarters in Baltimore, Maryland, and the remainder in Washington, D.C. and 10 regional offices nationwide. Medicare is broken down into two main categories which consist of the Original Medicare Plan and the Medicare Advantage Plan. Each category is made up of four sub-categories: Part A, Part B, Part C and Part D. The Original Medicare Plan consists of Part A and you have the option of adding Part B